The Manager at Wheeling Mulch Has Been Trying to Calculate

question 164

Multiple Choice

The manager at Wheeling Mulch has been trying to calculate the portion of the company's overhead expenses that is fixed and the portion that is variable.Over the past twelve months,the number of yards of mulch processed was highest in July,when the total monthly overhead costs totaled $28,000 for 32,000 yards of mulch processed.The lowest number of yards of mulch processed in the last twelve months occurred in October,when total overhead costs were $26,000 for 28,000 yards of mulch processed.What is the fixed portion of the monthly overhead expenses?

• A)$0
• B)$12,000
• C)$16,000
• D)$26,000

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Definitions:

Erythroblastosis Fetalis

A serious anemia that develops in a fetus with Rh-positive blood as a result of antibodies in an Rh-negative mother’s body.

Embolus

A blood clot, air bubble, piece of fatty deposit, or other object that has been carried in the bloodstream to lodge in a vessel and cause an embolism.

Coronary Artery

The arteries that supply blood to the heart muscle itself.

Myocardial Infarction

Commonly known as a heart attack, this condition occurs when blood flow to a part of the heart is blocked for a long enough time to cause damage or death to heart muscle.