Sweet Time Candies Projects Its Factory Rent to Be $8,000

question 82

Multiple Choice

Sweet Time Candies projects its factory rent to be $8,000 in August when 4,000 pounds of candy are expected to be produced.If rent is a fixed cost, and if production is expected to increase to 6,000 units in September, what is the expected cost of rent in September?

• A)$12,000
• B)$8,000
• C)$7,000
• D)Not enough information is provided to determine the answer.

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Definitions:

Public Interest

The welfare or well-being of the general public, often considered a guiding principle for governmental policy or action.

Capital Suppliers

Entities or individuals that provide funds or resources for businesses to invest in production, expansion, or development activities.

Payments

Transactions or transfers of money in exchange for goods or services, or to fulfill a legal obligation.

Central Planning

A system where the government makes all decisions about the production and allocation of goods and services.