If Total Costs Are $30,000 at an Output of 2,000

question 20

Multiple Choice

If total costs are $30,000 at an output of 2,000 units and $45,000 at an output of 3,500 units, and variable costs are $10 per unit, total fixed costs are:

• A)$15,000
• B)$10,000
• C)$20,000
• D)$25,000

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Definitions:

Cognitive Label

The identification or interpretation of a feeling once physiological arousal has occurred.

Physical Reaction

The body's automatic response to a specific stimulus, which can be immediate and involuntary, reflecting changes in physical state.

Emotion-arousing Stimulus

Any event or object that elicits a strong emotional response.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for problem solving, judgment, impulse control, and social and emotional behavior.