Scenario 20.1 Use the Following to Answer the Questions

question 105

Multiple Choice

Scenario 20.1
Use the following to answer the questions.
Concession Supply sells hotdogs,buns,and nacho ingredients to several major league ballparks across the country.Currently,Concession Supply has the following pricing information for one case of hotdogs sold at Wrigley Field: Total fixed costs = $1,200,Selling price = $16,and Variable costs = $6.
-Refer to Scenario 20.1.To break even,Concession Supply should sell ____ cases of hot dogs per day at Wrigley Field.

• A)13
• B)120
• C)40
• D)200
• E)60

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Definitions:

Molding Department

The section in a manufacturing facility where raw materials are shaped into parts through various molding processes.

Machine Hour

A measure of production time, indicating the hours a machine is in operation.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to related products and services based on the activities they require.

Overhead Cost

The ongoing expenses of operating a business that are not directly tied to the production of goods or services, such as rent and utilities.