Use the Following Information for the Next 3 Questions

question 2

Multiple Choice

Use the following information for the next 3 questions.
Loso Co. made and sold 100,000 of its only product in 2004 for $15 each. Loso's costs per unit for 2004 follow: In 2005, Loso expects to produce and sell 80,000 units. The selling price and variable costs per unit will remain unchanged, as will total fixed costs. Early in 2005, a new customer approaches Loso and requests a one-time special order for 30,000 units.
-What are total budgeted fixed costs for 2005?

• A) $160,000
• B) $150,000
• C) $120,000
• D) $200,000

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Definitions:

Resident Bacteria

Bacteria that are normally found on or in the human body and do not usually cause disease.

Disease-Causing Microorganisms

Microorganisms, such as bacteria, viruses, fungi, and parasites, that can lead to disease when they infect a host.

Sebum

An oily substance produced by sebaceous glands in the skin, which lubricates and waterproofs the skin and hair.

Epidermis

The outermost layer of the skin that provides a waterproof barrier and creates skin tone.