Calico Joe Fabrics Sells a Single Product How Would You Best Describe Calico's Variable Cost Per Unit

question 128

Multiple Choice

Calico Joe Fabrics sells a single product. The company estimates total fixed costs at $360,000 with demand and unit variable costs at various activity levels as follows:
$$\begin{array} {| c | c | c | } \hline \text { Units Demanded } & \text { Unit Price } & \text { Total Variable Costs } \\\hline 7,000 & \$ 31 & \$ 1,606,000 \\83,000 & 30 & 1,826,000 \\93,000 & 29 & 2,046,000 \\103,000 & 28 & 2,266,000 \\113,000 & 27 & 2,486,000\\\hline\end{array}$$
How would you best describe Calico's variable cost per unit over the range shown?

• A) It is constant.
• B) It is increasing as volume increases.
• C) It is decreasing as volume increases.
• D) There is not enough information provided to determine the answer.

Differentiate between various reproductive strategies in algae and protists.

Describe the structure and function of key cellular components specific to algae and protists.

Explain the evolutionary relationships among algae, protists, and other kingdoms.

Understand the concept of endosymbiosis and its significance in the evolution of eukaryotic cells.

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Definitions:

Demand Frequency

The rate or interval at which a product or service is requested or required by customers.

Weekly Demand

The total quantity of a product or service that customers want to purchase over the course of a week, impacting inventory levels and production planning.

Lost Sale

A situation in which a potential sale is not realized, often due to stock unavailability, pricing issues, or the customer's decision to purchase from a competitor.

Order Policy

Guidelines or rules defining how and when inventory orders should be placed to maintain optimal stock levels and minimize costs.