At an Activity Level of 10,000 Units,total Variable Costs Were

question 74

Multiple Choice

At an activity level of 10,000 units,total variable costs were $35,000 while total fixed costs were $20,800.If 16,000 units are produced and this activity is within the relevant range,which of the following statements is correct?

• A) Total costs would equal $89,280.
• B) Total unit cost would equal $4.80.
• C) Fixed cost per unit would equal $5.58.
• D) Total costs would equal $55,800.

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Definitions:

Financial Statements

Reports that summarize the financial performance and position of a company, including balance sheet, income statement, and cash flow statement.

Deferred Revenue

Money received for goods or services which have not yet been delivered or performed; recognized as a liability until the revenue earning criteria are met.

Earned

Income or revenue that has been realized or generated, typically through the sale of goods or services.

Collected

The process of receiving or bringing in payments or money owed to an individual or business.