Use the Information Below to Answer the Following Question(s)

question 65

Multiple Choice

Use the information below to answer the following question(s) .Big Island Coffee Co.produced and sold 120,000 units last year.Per unit revenue and costs were as follows:
Fixed manufacturing overhead and administrative salaries are fixed costs.The per unit amounts are based on last year's production.
-Fixed costs

• A)may include either direct or indirect costs.
• B)vary with production or sales volumes.
• C)include parts and materials used to manufacture a product.
• D)can be adjusted in the short run to meet actual demands.
• E)remain fixed regardless of the relevant range of production.

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Definitions:

Total Variable Cost

The cumulative expenses that change in proportion to the level of goods or services produced.

Output

refers to the quantity of goods or services produced by a firm, industry, or economy within a specific period.

Marginal Cost

Marginal cost is the cost of producing one additional unit of a product or service.