Fasheh Corporation's Relevant Range of Activity Is 7,000 Units to 11,000

question 114

Multiple Choice

Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:

-If 10,000 units are produced,the total amount of fixed manufacturing cost incurred is closest to:

• A) $128,250
• B) $121,500
• C) $148,500
• D) $135,000

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Definitions:

Progressive

A political and social philosophy advocating for reforms and changes that aim towards greater equality and the improvement of public welfare.

Regressive

A tax system in which the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income earners.

Proportional

Relating to or having characteristics that maintain a consistent relationship in size, amount, or degree with something else, often used in mathematics and statistics.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, placing a higher tax burden on wealthier individuals.