At Zero Direct Labor Hours in a Flexible Budget Graph

question 93

Multiple Choice

At zero direct labor hours in a flexible budget graph the total budgeted cost line intersects the vertical axis at $30000. At 15000 direct labor hours a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90000. Fixed and variable costs may be expressed as:

• A) $30000 fixed plus $4 per direct labor hour variable.
• B) $30000 fixed plus $6 per direct labor hour variable.
• C) $60000 fixed plus $2 per direct labor hour variable.
• D) $60000 fixed plus $4 per direct labor hour variable.

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Definitions:

Family Branding

A marketing strategy that uses a single brand name for all of a company's products or services to capitalize on brand recognition.

Subbranding

A marketing strategy that creates a subsidiary or secondary brand within a main brand to appeal to different customer segments.

Multiproduct Branding

A marketing approach in which a single name is utilized by a corporation for every item within a given category of products.

Mixed Branding

A marketing tactic where a firm uses its own brand along with a reseller's brand to reach a different segment of customers than it usually targets.