Use the Table for the Question(s)below

question 95

Multiple Choice

Use the table for the question(s) below.
Ideko Sales and Operating Cost Assumptions

-Based upon Ideko's sales and operating cost assumptions,what production capacity will Ideko require in 2017?

• A)1702 units
• B)1323 units
• C)1505 units
• D)1914 units
• E)1115 units

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Definitions:

Variable Selling Expense

Costs that vary directly with the volume of sales, such as commissions and shipping charges.

Shipping Costs

Expenses associated with the transportation of goods from the supplier to the point of sale or end-user.

Contribution Margin

The amount remaining from sales revenues after all variable expenses have been deducted.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, i.e., they remain constant regardless of the level of production or sales.