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:

Resource Prices

refer to the costs associated with procuring the natural, human, and capital inputs required for the production of goods and services.

Incentive

A factor, often a reward or penalty, that motivates an individual or entity to act in a certain way.

Supply Curve

A visual diagram that illustrates how the price of a product correlates with the amount of the product that sellers are prepared to sell at various price levels.

Human Resource

A department within organizations focused on employee recruitment, management, and providing direction for the people who work in the institution.