A Review of Parson Corporation's Accounting Records Found That at a Volume

question 65

Multiple Choice

A review of Parson Corporation's accounting records found that at a volume of 90,000 units, the variable and fixed cost per unit amounted to $8 and $4, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 85,000 units?

• A) $1,020,000.
• B) $1,040,000.
• C) $1,060,000.
• D) $1,080,000.
• E) None of the answers is correct.

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Definitions:

Identified

Recognized or established as being a particular entity or thing.

Contract

A legally binding agreement between two or more parties that outlines rights and duties towards one another.

Voidable

A legal term describing a transaction or agreement that may be annulled or voided at the discretion of one party.

Good Faith Purchaser

A purchaser who buys without notice of any circumstance that would put a person of ordinary prudence on inquiry as to whether the seller has valid title to the goods being sold.