To Follow Is Information About the Units Produced and Total

question 173

Multiple Choice

To follow is information about the units produced and total manufacturing costs for Pine Enterprises for the past six months. Using the high-low method, what will the total monthly manufacturing costs be if the company produces 9200 units?

• A)$7,500
• B)$4,600
• C)$8,600
• D)$2,900

---

Definitions:

Economic Losses

Occur when a company's total costs exceed its total revenues, leading to negative profitability.

Break Even

The point at which total costs and total revenue are equal, resulting in no net gain or loss for a business.

Long-Run Economic Losses

Persistent negative financial outcomes for firms or the economy that occur over an extended period, often due to structural issues.

Production Costs

Expenses incurred in the manufacturing or creation of goods, including labor, materials, and overhead.