When the Stay Connected Cell Phone Company Is at Full

question 216

Multiple Choice

When the Stay Connected Cell Phone Company is at full capacity, it incurs costs of $230,000. During the December shutdown period, when no cell phones are produced, it incurs costs of $76,000. It can be concluded that

• A) fixed costs are $230,000.
• B) at full capacity, variable costs are $154,000.
• C) fixed costs are $154,000.
• D) variable costs at half capacity are $115,000.