A Soft Drink Bottler Incurred the Following Factory Utility Cost

question 163

Multiple Choice

A soft drink bottler incurred the following factory utility cost: $9,246 for 5,200 cases bottled and $8,997 for 4,900 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

• A) $1.81
• B) $1.78
• C) $1.84
• D) $0.83

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Definitions:

Holder In Due Course

A party who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims.

Issuer

An entity that develops, registers, and sells securities for the purpose of financing its operations.

Date

A specific point in time, often defined by day, month, and year, which can be associated with events, deadlines, or appointments.

Holder

A person or entity that possesses a negotiable instrument, such as a check or bond, and has the legal right to enforce it.