Leinart Company Produces and Sells a Product That Has Variable

question 13

Multiple Choice

Leinart Company produces and sells a product that has variable costs of $9 per unit and fixed costs of $200,000 per year. If production decreases from 50,000 to 40,000 units, the cost per unit will _____.

• A)increase by $1
• B)decrease by $1
• C)increase to $13
• D)decrease to $14

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Definitions:

Statement Of Retained Earnings

A financial statement that outlines the changes in a company's retained earnings over a specified period, including net income earned and dividends paid out to shareholders.

Dividends

Payments made by a corporation to its shareholders, typically from its profits, as a distribution of earnings.

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its transactions.

Exchange Rates

The rate at which one currency can be exchanged for another, often influenced by economic factors and market conditions.