Wu Company Incurred $40,000 of Fixed Cost and $50,000 of Variable

question 110

Multiple Choice

Wu Company incurred $40,000 of fixed cost and $50,000 of variable cost when 4,000 units of product were made and sold. If the company's volume doubles,the total cost per unit will:

• A) stay the same.
• B) decrease.
• C) double as well.
• D) increase but will not double.

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Definitions:

Parasympathetic

Referring to the part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Somatic

Relating to, or affecting the body, especially as distinguished from the mind or consciousness.

Endorphins

Natural, pain-relieving chemicals produced by the body that also contribute to feelings of pleasure and well-being.

Dopamine

A neurotransmitter involved in the regulation of movement, attention, learning, mood, and motivation.