Ouelette Corporation's Relevant Range of Activity Is 3,000 Units to 7,000

question 259

Multiple Choice

Ouelette Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

• A) $15,000
• B) $22,800
• C) $7,800
• D) $25,800

---

Definitions:

Computerized Cash Register

An electronic device designed to handle sales transactions, equipped with the ability to store, process, and record sales data.

Supply Partnership

A strategic relationship between a supplier and a buyer aimed at improving efficiency, quality, and competitiveness.

Microprocessors

Integrated circuits that contain the basic functions of a central processing unit (CPU) of a computer, performing calculations and operations necessary to run software.

Supply Partnership

A strategic agreement between a buyer and a supplier aimed at increasing the value both parties receive from the relationship, often involving cooperation and long-term engagement.