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:

Account Type

Categories within accounting systems that classify financial transactions, such as assets, liabilities, revenue, and expenses.

Alphabetically

Arranging words or items based on the sequence of the letters in the alphabet.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's actual profitability.

Revenues

The total income that a business generates from its normal business activities, usually from the sale of goods and services to customers.