A Company Has Monthly Fixed Costs of $96,000

question 205

Multiple Choice

A company has monthly fixed costs of $96,000. The variable costs are $8.00 per unit. If the sales price of a unit is $14.00 and we sell 8000 units, the company's total variable costs will be

• A)$96,000.
• B)$64,000.
• C)$112,000.
• D)$48.

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Definitions:

Arbitration

A method of dispute resolution where an impartial third party makes a binding decision to resolve a conflict outside of court.

Deposition

A sworn, out-of-court oral testimony of a witness that is used for gathering information as part of the discovery process and, in limited circumstances, as testimony at trial.

Preserve Testimony

The practice of documenting and saving witness statements or depositions to ensure their availability for future legal proceedings.

Gravely Ill

A state of severe health condition that poses a threat to life or long-term well-being, often requiring intensive medical care.