Dake Corporation's Relevant Range of Activity Is 3,800 Units to 9,000

question 214

Multiple Choice

Dake Corporation's relevant range of activity is 3,800 units to 9,000 units. When it produces and sells 6,400 units, its average costs per unit are as follows: If 5,400 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

• A) $7,560
• B) $22,400
• C) $29,960
• D) $26,460

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Definitions:

Abiotic Environment

The non-living chemical and physical components of an environment, such as temperature, light, and mineral nutrients, which affect living organisms.

Abiotic

Referring to non-living chemical and physical factors in the environment which affect ecosystems.

Biotic

Relating to or resulting from living things, especially in their ecological relations.

Ecosystems

Communities of living organisms in conjunction with the nonliving components of their environment, interacting as a system.