A Graph of a Flexible Budget Formula Reflects Fixed Costs

question 182

Multiple Choice

A graph of a flexible budget formula reflects fixed costs of $45,000 per month and total costs of $100,000 at a volume of 5,000 units.Assuming the relevant range is 1,000 to 20,000 units,the graph would reflect total monthly costs at 15,000 units of what dollar amount?

• A)$210,000
• B)$100,000
• C)$345,000
• D)$165,000

Understand the concept and significance of cultural intelligence in global leadership and intercultural settings.

Identify the factors contributing to cultural distance and its impact on communication and organizational behavior theories.

Comprehend the role and characteristics of cultural dimensions, such as masculinity versus femininity, in comparing societies.

Develop insight into the importance of cultural awareness in international assignments and the challenges faced by expatriates.

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Definitions:

Sensitivity Analysis

A financial modeling technique that determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Break-Even Point

The point at which total costs and total revenues are equal, meaning the business is not making a profit or loss, a crucial figure for financial planning and management.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company’s fixed versus variable costs.

Variable Costs

Charges that adjust in direct proportion to the manufacturing output or the quantity of sales.