Oerther Corporation Reports That at an Activity Level of 5,000

question 111

Multiple Choice

Oerther Corporation reports that at an activity level of 5,000 units, its total variable cost is $131,750 and its total fixed cost is $31,200.What would be the average fixed cost per unit at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

• A) $6.24
• B) $6.00
• C) $14.94
• D) $32.59

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Definitions:

Modeling

A method of learning that involves observing and mimicking the behavior of others.

Ineffective Punishment

A form of discipline that fails to decrease the occurrence of a behavior; it may lack consistency, immediacy, or connection to the specific behavior.

Fear

A basic emotion induced by a perceived threat, leading to confrontation with or avoidance of said threat.

Rebellious

describes a person, behavior, or action showing a desire to resist authority, control, or convention.