Based on Predicted Production of 25,000 Units, FreshCo

question 132

Essay

Based on predicted production of 25,000 units, FreshCo. anticipates $175,000 of fixed costs and
$137,500 of variable costs. What are the flexible budget amounts of total costs for 20,000 and 30,000 units?

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Definitions:

Convergent Thinking

Form of thinking that searches for a single answer to a question (such as 2+2=?); contrasts with divergent thinking.

Divergent Thinking

Form of thinking that searches for multiple solutions to a problem (how many ways can a pen be used?); contrasts with convergent thinking.

Traditional Intelligence Tests

Standardized assessments designed to measure a person's intellectual abilities in various areas, such as logical reasoning, problem-solving, and verbal comprehension.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, often leading to novel or unconventional outcomes.