The Following Cost Information Pertained to the Violin Division of Stringing

question 71

Multiple Choice

The following cost information pertained to the Violin Division of Stringing Music Co.and was based on monthly demand and sales of 100 units:
Assuming that the original cost information pertained to five violins that had been produced in the current period,total relevant cost per unit is:

• A)$82.80.
• B)$70.80.
• C)$66.00.
• D)$24.00.
• E)$36.00.

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Definitions:

Total Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated by dividing total liabilities by total assets.

Total Assets

The sum of all assets owned by a business, including current, fixed, and intangible assets, representing the total resources a company has at its disposal.

Total Liabilities

Comprises all the obligations a company owes, including loans, accounts payable, mortgages, deferred revenues, bond issues, warranties, and accrued expenses.