Use the Table Below to Answer the Following Question(s) -From the "What If" Values, Calculate the Total Cost When

question 20

Multiple Choice

Use the table below to answer the following question(s) .
In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. $\begin{array}{|l|l|l|l|}\hline & \text { A } & \text { B } & \text { C } \\\hline 1 & \text { Profit Model } & & \\\hline 2 & & & \\\hline 3 & \text { Data } && \begin{array}{l}\text { What-If } \text { Demand } \\\text { Values }\end{array} \\\hline 4 & & & 20,000 \\\hline 5 & \text { Unit Price (\$) } & 50 & 40,000 \\\hline 6 & \text { Unit Cost (\$) } & 25 & 55,000 \\\hline 7 & \text { Fixed Cost (\$) } & 550,000 & 60,000 \\\hline 8 & \text { Demand } & 60,000 & 65,000 \\\hline 9 & \text { Quantity Produced } & 55,000 & \\\hline 10 & & & \\\hline\end{array}$
-From the "what if" values, calculate the total cost when demand is 40,000.

• A) $ 2,000,000
• B) $1,925,000
• C) $1,100,000
• D) $75,000

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Definitions:

Frequency Theory

Theory on how the inner ear registers the frequency of sound, stating that the perception of a sound’s frequency depends on how often the auditory nerve fires.

Basilar Membrane

A key structure in the cochlea of the inner ear which plays a critical role in the sense of hearing by vibrating in response to sound.

Auditory Nerve

The nerve that transmits auditory information from the inner ear (cochlea) to the brain.

Mechanical Energy

The sum of kinetic and potential energy in physical systems, describing the ability to do work based on movement and position.