Palmer Inc

question 46

Multiple Choice

Palmer Inc.currently produces 110,000 units at a cost of $440,000.The cost is variable.Next year Palmer Inc.expects to produce 115,000 units.Palmer's relevant range for production is 100,000 to 120,000 units.If 115,000 units are produced next year,what is the expected variable cost?

• A)$420,000
• B)$430,000
• C)$440,000
• D)$460,000

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Definitions:

Authority Decisions

relate to choices or judgments made by individuals or bodies holding power or command within an organization.

Manager

An individual responsible for directing, controlling, and administering an organization or group, overseeing tasks, and making decisions.

Confirmation Error

The tendency to seek confirmation for what is already thought to be true and not search for disconfirming information.

Selective Perception

The tendency to define problems from one’s own point of view.