At Raines Company, Total Fixed and Variable Costs Are $480,000

question 187

Multiple Choice

At Raines Company, total fixed and variable costs are $480,000 at a production level of 140,000 units. The company has total fixed costs of $200,000.
-At Raines Company the fixed cost per unit at a production level of 200,000 units is

• A) $3.43.
• B) $2.40.
• C) $1.00.
• D) $1.43.

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Definitions:

Rationale

The underlying reason or logical basis for a decision, action, or belief, often used in argumentation or analysis.

Freedom To Farm Act

A law passed in 1996 that revamped 60 years of U.S. farm policy by ending price supports and acreage allotments for wheat, corn, barley, oats, sorghum, rye, cotton, and rice.

Subsidies

Financial assistance provided by the government to businesses or individuals, often to support industries or activities considered beneficial.

Federal Government

The central government of a country, which holds the primary authority over its subdivisions and is responsible for national policies.