Barredo Corporation's Relevant Range of Activity Is 3,000 Units to 7,000

question 12

Multiple Choice

Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:

-If 4,000 units are sold,the variable cost per unit sold is closest to:

• A) $16.75
• B) $12.85
• C) $11.90
• D) $14.70

Identify challenges and opportunities for international business in Africa.

Explain the concept of globalisation and its implications for international business.

Understand the role of major economic agreements such as NAFTA, the European Union, and APEC in facilitating international trade.

Analyze the economic relationships and trade dynamics between specific countries and regions.

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Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors hold true for a specific business.

Curvilinear Costs

Costs that change with the level of output or activity in a non-linear relationship, displaying variances in the cost per unit at different production volumes.

Break-even Analysis

A calculation that determines when an investment will reach a financial break-even point.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the level of risk in missing sales projections.