National Inc

question 79

Multiple Choice

National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.Using activity-based costing, applied miscellaneous overhead for the HighF model per unit is (rounded to the nearest cent) :

• A)$6.13.
• B)$11.86.
• C)$16.28.
• D)$32.36.
• E)$66.73.

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Definitions:

Utility Function

A mathematical representation in economics of a consumer's preference ordering over a set of goods or outcomes.

Risk-Free Asset

An asset with a certain rate of return; often taken to be short-term T-bills.

Indifference Curve

A graphical representation in microeconomics showing different combinations of two goods that provide an individual with the same level of satisfaction or utility.

Expected Rate of Return

The anticipated return on an investment, taking into account both the risk of the investment and market conditions.