Axelrod Company Has Fixed Costs of $250,000

question 158

Multiple Choice

Axelrod Company has fixed costs of $250,000. Highest production volume this year was in January when there were 100,000 units produced and total costs of $550,000. In June, the company produced only 60,000 units. How much was the total cost in June?

• A) $378,000
• B) $430,000
• C) $330,000
• D) $414,500

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Definitions:

Risk Averter

An individual who prefers outcomes that are certain over those with any level of risk, usually willing to accept lower returns to avoid uncertainty.

Expected Value

A calculated average outcome of a random variable, considering all possible outcomes and their probabilities.

Natural Log

A logarithm to the base e (where e is approximately 2.71828), used extensively in mathematical, economic, and scientific applications.

Risk Averter

An individual or entity that prefers to avoid uncertainty and potential losses when making investment or financial decisions.