Use the Following Information to Answer the Following Questions

question 29

Multiple Choice

Use the following information to answer the following Questions
The Step Company has the following information for the year just ended:


-The Step Company's sales-volume variance is:

• A) $3,000 unfavorable.
• B) $4,000 unfavorable.
• C) $4,400 favorable.
• D) $10,000 unfavorable.
• E) $10,000 favorable.

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Definitions:

Average Total Cost Curve

A graphical representation showing how the total cost of production per unit of output changes with the level of output.

Long-run Equilibrium

occurs when all firms in a market or industry are producing at their most efficient level, with no incentive for entry or exit, and economic forces are balanced.

Total Revenue

The total amount of money a firm receives from selling its goods or services, calculated as the unit price multiplied by the quantity sold.

Increasing-cost Industry

An industry in which the cost of production increases as the industry's output expands, often due to resource limitations or rising input prices.