(Appendix 5A) One of Matthew Corporation's Competitors Has Learned That

question 78

Multiple Choice

(Appendix 5A) One of Matthew Corporation's competitors has learned that Matthew has a total expense per unit of $1.50 at the 15,000 unit level of activity and total expense per unit of $1.45 at the 20,000 unit level of activity. Assume that the relevant range includes all of the activity levels mentioned in this problem.
-What would be the competitor's prediction of total fixed cost per period?

• A) $22,500
• B) $28,000
• C) $13,600
• D) $ 3,000

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Definitions:

Sensory Deprivation

A condition in which an individual is deprived of normal external stimuli such as sight and sound for an extended period, leading to increased sensitivity or hallucinatory experiences.

Reverberation

The persistence of sound after the source has stopped, caused by reflection of sound waves.

Retinal Disparity

The slight difference in the visual images that reach each eye, leading to the perception of depth.

Curvature

The degree to which a surface or line deviates from being flat or straight, often used in mathematics, physics, and various fields of engineering.