Taylor Products Inc

question 21

Multiple Choice

Taylor Products Inc.has an $8000 unfavourable flexible budget variance for October.If October's flexible budget net income was $175 000,which of the following statements is true?

• A) Taylor's static budget must have showed net income of $183 000.
• B) Taylor's static budget must have showed net income of $167 000.
• C) Taylor's actual net income must have been $183 000.
• D) Taylor's actual net income must have been $167 000.

---

Definitions:

Utility Function

A mathematical representation of a consumer's preference, showing the level of satisfaction or utility derived from different bundles of goods and services.

Indifference Curve

A curve that shows the different bundles of goods between which a consumer is indifferent, highlighting the trade-offs a consumer is willing to make.

Apples

A popular fruit with a sweet to tart taste, grown in temperate climates and consumed fresh, cooked, or as juice.

Bananas

A type of elongated, edible fruit with soft flesh and a yellow peel when ripe, primarily grown in tropical regions.