George Company Has a Relevant Range of 150,000 Units to 400,000

question 175

Multiple Choice

George Company has a relevant range of 150,000 units to 400,000 units. The company has total fixed costs of $525,000. Total fixed and variable costs are $612,500 at a production level of 175,000 units. The variable cost per unit at 300,000 units is

• A)the same as at 175,000 units.
• B)greater than at 175,000 units.
• C)less than at 175,000 units.
• D)dependent upon fixed costs per unit.

---

Definitions:

Net Income

The net earnings of a business following the subtraction of all costs and taxes from the gross income.

Predictor

A statistical measure or model used to estimate future trends or outcomes based on historical data.

Shareholder's Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as stockholder's equity or owner's equity.

Share Capital

The funds raised by a company through the sale of its shares, representing the equity stake of its shareholders.