George Company Has a Relevant Range of 150,000 Units to 400,000

question 175

Multiple Choice

George Company has a relevant range of 150,000 units to 400,000 units. The company has total fixed costs of $525,000. Total fixed and variable costs are $612,500 at a production level of 175,000 units. The variable cost per unit at 300,000 units is

• A)the same as at 175,000 units.
• B)greater than at 175,000 units.
• C)less than at 175,000 units.
• D)dependent upon fixed costs per unit.

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Definitions:

Insurance Company

An organization that provides financial protection and compensation for specified losses in return for payment of a premium.

Probability

The chance or odds of a specific event taking place.

Premiums

The amount paid for an insurance policy.

Flood Insurance

A specific form of insurance designed to protect homeowners against property loss due to flooding, often required in high-risk flood areas.