Given the Cost Formula Y = $15,000 + $5X,total Cost

question 38

Multiple Choice

Given the cost formula Y = $15,000 + $5X,total cost at an activity level of 8,000 units would be?

• A) $15,000.
• B) $23,000.
• C) $40,000.
• D) $55,000.

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Definitions:

Cash Dividend

This is a payment made by a company out of its earnings to its shareholders, usually in the form of cash.

Earnings

The amount of profit that a company generates during a specific period, which can be used to measure the company's financial health and profitability.

Stockholders

Individuals or entities that own shares of stock in a corporation, having ownership interest in the company.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares held by insiders and company officers.