A Soft Drink Bottler Incurred the Following Factory Utility Cost

question 270

Multiple Choice

A soft drink bottler incurred the following factory utility cost: $3,611 for 700 cases bottled and $3,702 for 1,000 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

• A) $5.16
• B) $0.30
• C) $3.70
• D) $3.61

---

Definitions:

North American Free Trade Agreement (NAFTA)

A trilateral trade agreement between Canada, Mexico, and the United States to reduce trade barriers and promote economic integration.

Economic Development

The process of improving the economic well-being and quality of life for a community, by increasing jobs and wealth and creating a stable economic base.

Vitality of the Economy

An indication of how dynamic, robust, and prosperous an economy is, often measured by factors like growth rates, employment levels, and innovation.

Megacity

A metropolitan area with a total population in excess of ten million people.