Joshua Company Produces and Sells a Product That Has Variable

question 102

Multiple Choice

Joshua Company produces and sells a product that has variable costs of $7 per unit and fixed costs of $200,000 per year.If production increases from 20,000 units to 25,000 units,the unit cost will ________.

• A)increase by $35,000
• B)decrease by $2 per unit
• C)decrease by $8 per unit
• D)stay the same

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Definitions:

Few Persons

A term not widely used in a specific financial or legal context; generally, it refers broadly to a small number of individuals.

Commingles

The act of mixing or combining funds or properties in a way that makes them indistinguishable from one another.

Corporate Interests

The concerns, objectives, or priorities of a corporation, often related to profitability, growth, and protecting the company's market position.

Debts

Money owed by one party to another under an agreement to repay borrowed funds or services.