Based on a Predicted Level of Production and Sales of 12,000

question 101

Multiple Choice

Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000. Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be:

• A) $10,000 of fixed costs and $72,000 of variable costs.
• B) $10,000 of fixed costs and $90,000 of variable costs.
• C) $12,500 of fixed costs and $90,000 of variable costs.
• D) $12,500 of fixed costs and $72,000 of variable costs.
• E) $10,000 of fixed costs and $81,000 of variable costs.

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Definitions:

Means-tested Income Transfers

Financial transfers or benefits given to individuals or families whose income falls below a certain level, aimed at reducing poverty and income inequality.

Transfer Recipients

Individuals or entities that receive benefits or payments from government programs without providing goods or services in return.

Samaritan's Dilemma

A dilemma faced by a benefactor who must decide the extent of assistance to a beneficiary, knowing that too much help can lead to dependency.

Transfer Programs

Government initiatives designed to redistribute income through mechanisms like subsidies, grants, or social assistance to support various segments of the population.