Find the Amount That Will Be Accumulated in the Account

question 5

Multiple Choice

Find the amount that will be accumulated in the account under the given conditions.
-The principal $15,400 is accumulated with simple interest of 16% for 5 years.

• A) $20,212.50
• B) $27,720
• C) $12,320
• D) $15,892.80

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Definitions:

Total Variable Cost

The total of all costs that vary with changes in the production level or sales volume, such as raw materials, direct labor, and variable overhead.

Relevant Range

The range of activity or volume over which the assumed cost behavior is valid, within which fixed and variable costs do not change.

Incremental Manufacturing Cost

The additional cost incurred by producing one more unit of a product, often considered in decision-making and pricing.

Relevant Range

The span of activity or production volume over which fixed and variable costs remain constant on a per-unit basis.