Presented Below Is the Production Data for the First Six

question 124

Multiple Choice

Presented below is the production data for the first six months of the year showing the mixed costs incurred by Brooklyn Company. $$\begin{array} { l l r } \text { Month } & \text { Cost } & \text { Units } \\\text { July } & \$ 7,500 & 4,000 \\\text { August } & 11,250 & 9,500 \\\text { September } & 11,500 & 9,000 \\\text { October } & 11,700 & 10,500 \\\text { November } & 13,500 & 12,000 \\\text { December } & 12,850 & 10,000\end{array}$$ Brooklyn Company uses the high?low method to analyze mixed costs.The total cost at an operating level of 10,000 units is _____.

• A)$12,500
• B)$12,000
• C)$11,800
• D)$11,725

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Definitions:

Compounded Semi-Annually

Calculation of interest on the initial principal and the accumulated interest over the first 6 months repeated every half year.

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle that allows for tax-deferred savings towards retirement.

Contributions

Money that individuals or entities provide towards a common pool or fund, often for purposes like retirement savings plans or investment funds.

Ordinary Annuity

Equivalent monetary exchanges concluded after each sequential era over a predetermined course.