A Company Produces Toy Airplanes at a Variable Cost of $23

question 160

Multiple Choice

A company produces toy airplanes at a variable cost of $23 per toy.If 7,000 toys are produced at a total variable cost of $161,000,the total variable cost at 4,500 toys will be

• A)$161,000.
• B)$23.
• C)$103,500.
• D)$264,500.

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Definitions:

Safety Stock

Additional inventory kept to reduce the risk of stockouts.

Service Level

A measurement of the quality and efficiency of a service, often evaluated based on factors such as speed, reliability, and customer satisfaction.

Safety Stock

Extra inventory kept on hand to protect against stockouts caused by variations in supply and demand.

Service Level

A measure of the quality of service provided to customers, often quantified as the percentage of customer demands met on time.