The Manager at Screaming Trees Has Been Trying to Calculate

question 44

Multiple Choice

The manager at Screaming Trees has been trying to calculate the portion of the company's overhead expenses that is fixed and the portion that is variable. Over the past twelve months, the number of yards processed was highest in July, when the total monthly overhead costs totaled $28,000 for 33,000 yards of mulch processed. The lowest number of yards of mulch processed in the last twelve months occurred in October, when total overhead costs were $21,000 for 24,000 yards of mulch processed. What was the variable cost per yard?

• A)$0.78
• B)$1.29
• C)$0.85
• D)$0.88

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Definitions:

Product Mix

The range of different products or services offered by a company.

Budgeted Data

Financial forecasts and plans for future periods, outlining expected revenues, costs, and expenses.

Profit After Tax

The net income a company remains with after all expenses, including taxes, have been subtracted from total revenue.

Sales Revenue

The income from sales of goods or services before any costs or expenses are deducted.