Rom Generators Is in the Process of Preparing a Production

question 36

Multiple Choice

Rom Generators is in the process of preparing a production cost budget for August.Actual costs in July for the production of 60 generators were: $\begin{array}{lr}\text { Materials cost } & 5,200 \\\text { Labor cost } & 2,600 \\\text { Rent } & 1,200 \\\text { Depreciation } & 1,700 \\\text { Other fixed costs } & 4,600\\\text { Total }&\$15,300\end{array}$ Materials and labor are the only variable costs.If production and sales are budgeted to increase to 70 generators in August, how much is the expected total cost on the August budget?

• A)$17,850
• B)$16,600
• C)$9,100
• D)$15,300

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Definitions:

Time-Value

Time-value represents the concept that money available at the current time is worth more than the same amount in the future due to its potential earning capacity, emphasizing the importance of time in finance.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the principal loan amount charged by lenders to borrowers.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in time value of money calculations.

Future Amount

The value of an investment or sum of money projected at a future date, taking into account factors like interest rates or earnings.