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

question 144

Multiple Choice

Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit. Additional information follows $\begin{array}{llr}\text { Month}&\text { Units produced }&\text {Total costs }\\\text { June } & 2,000 & \$ 32,000 \\\text { July } & 1,000 & 20,000\end{array}$ If Ponszko's produces 2,300 units in August, how much is its total cost expected to be?

• A) $8,000
• B) $39,600
• C) $27,600
• D) $35,600

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Definitions:

Return On

A financial ratio indicating the profitability of an investment compared to its cost.

Stockholders' Equity

Refers to the residual interest in the assets of a corporation after deducting its liabilities.

Common Stockholders' Equity

The portion of a company's equity that is attributable to common stock holders, calculated as the difference between total assets and total liabilities, excluding preferred shares.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicating the return on investment from dividend payments alone.