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

question 55

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)$3.00.
• B)$0.29.
• C)$0.50.
• D)$3.50.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects debts from its customers, calculated by dividing total net sales by the average accounts receivable.

Financial Information

Data regarding a company's financial status, including income, expenses, assets, liabilities, and equity.

Whirlpool Company

A global manufacturer and marketer of home appliances known for producing refrigerators, washing machines, and other domestic appliances.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period.