Presented Below Is the Production Data for the First Six

question 9

Multiple Choice

Presented below is the production data for the first six months of the year for the mixed costs incurred by Strongsville Company. $$\begin{array} { l l l } \text { Month } & \text { Cost } & \text { Units } \\\text { January } & \$ 7,500 & 4,000 \\\text { February } & 11,250 & 6,500 \\\text { March } & 10,500 & 8,000 \\\text { April } & 12,700 & 10,500 \\\text { M ay } & 13,500 & 12,000 \\\text { June } & 10,850 & 9,000\end{array}$$ Strongsville Company uses the high- low method to analyze mixed costs. The total cost at an operating level of 10,000 units is:

• A) $11,800
• B) $11,725
• C) $12,500
• D) $12,000

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Definitions:

Fully Depreciated

The state of an asset when its book value is reduced to zero through depreciation, signifying it has recognized the expense of its full useful life.

Salvage Value

The estimated sell-back value of an asset once it surpasses its life of effectiveness.

Book Value

The net value of a company's assets minus its liabilities, representing the shareholders' equity on a per share basis.

Loss on Disposal

The financial loss incurred when the selling price of an asset is less than its carrying amount at the time of disposal.