Total Fixed Costs for Toys and Trinkets Incorporated Are $88,000

question 93

Multiple Choice

Total fixed costs for Toys and Trinkets Incorporated are $88,000.Total costs,including both fixed and variable,are $155,000 if 268,000 units are produced.The total variable costs at a level of 275,000 units would be

• A)$68,750.
• B)$159,049.
• C)$90,299.
• D)$151,055.

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Definitions:

Target Market

The specific group of consumers at which a company aims its products and services, identified through characteristics like demographics, behaviors, and needs.

Product Line

A series of related products offered by a single company designed to serve a particular customer need or market.

Goods

Goods are tangible products or items that can be sold or bought, providing satisfaction and value to the consumer, ranging from food items to electronic gadgets.

Cannibalization

When a company's new product eats into the sales of one of its existing products.