Ponszko Nursery Used High-Low Data from June and July to Determine

question 8

Multiple Choice

Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit. Additional information follows: $$\begin{array} { l c c } \text { Month } & \text { Units produced } & \text { Total costs } \\\text { June } & 2,000 & \$ 32,000 \\\text { July } & 1,000 & 20,000\end{array}$$ If Ponszko's produces 2300 units in August how much is its total cost expected to be?

• A) $8000
• B) $39600
• C) $27600
• D) $35600

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Definitions:

Married Couples

Two individuals legally united in marriage, recognized for various legal, social, or tax purposes.

Filing Jointly

Filing jointly refers to a tax filing status that allows married couples to combine their income and deductions on a single tax return, potentially leading to tax benefits.

Net Book Value

The value of an asset or liability according to a company's balance sheet, deducting depreciation or amortization.

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded against a fixed asset over its useful life to date.