Axelrod Company Has Fixed Costs of $250,000

question 158

Multiple Choice

Axelrod Company has fixed costs of $250,000. Highest production volume this year was in January when there were 100,000 units produced and total costs of $550,000. In June, the company produced only 60,000 units. How much was the total cost in June?

• A) $378,000
• B) $430,000
• C) $330,000
• D) $414,500

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Definitions:

Partnership Agreement

A contract among partners in a business that outlines the terms of the relationship, including contributions, distributions, and decision-making.

New Business Venture

A newly established business endeavour, typically characterized by innovation, entrepreneurship, and risk.

Limited Partner

An investor in a partnership who has limited liability to the extent of their investment in the partnership and does not participate in daily business operations.

Dissolve

The process of formally closing or ending a legal entity, such as a corporation or partnership, and distributing its assets.