Mantel Incorporated Began Producing Its New Line of Dolls at Its

question 102

Multiple Choice

Mantel Incorporated began producing its new line of dolls at its Connecticut plant in December of year 0. In year 1, it produced 30,000 dolls at a total cost of $385,000. In year 2, its production increased to 80,000 dolls at a total cost of $885,000. Assuming the cost structure was the same for both years, what must be the variable cost (C) and the fixed cost (F) per doll?

• A) F is less than $80,000, and C is greater than $7.
• B) F is greater than $60,000, and C is less than $5.
• C) F is less than $100,000, and C is greater than $9.
• D) F is greater than $110,000, and C is less than $6.

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Definitions:

Low Concern

This phrase suggests a state of minimal interest or worry about a particular issue or situation.

Self-Preoccupation

An excessive or predominant focus on oneself, one's needs, desires, or feelings.

Motivational Distortion

A cognitive bias causing individuals to see what they wish to see or to hear what they wish to hear, often driven by their desires or fears.

Working Self-Concept

The part of an individual's self-knowledge that is currently active and influencing their thoughts, feelings, and actions at any given time.