Dake Corporation's Relevant Range of Activity Is 2,000 Units to 6,000

question 267

Multiple Choice

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

• A) $56,200
• B) $45,800
• C) $60,200
• D) $10,400

---

Definitions:

Cognitive

Pertaining to the mental actions or processes of acquiring knowledge and understanding through thought, experience, and the senses.

Theoretical Understanding

Comprehension based on principles and theories rather than practical application or experience.

Practical Understanding

Practical understanding refers to knowledge that is not just theoretical but also includes the ability to apply information or skills in real-world situations.

Community Partnerships

Collaborative relationships between organizations and the local community designed to achieve common goals and address community needs.