Product a Has a Sales Price of $10 Per Unit

question 204

Multiple Choice

Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the variable costs are $6 per unit and the fixed costs are $3 per unit. Using a flexible budget for 12,500 units, what is the budgeted operating income from Product A?

• A) $35,000.
• B) $30,000.
• C) $25,000.
• D) $12,500.
• E) $20,000.

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Definitions:

Bystander Intervention Effect

The failure to offer help to people in need.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.

Obedience

A form of social influence where an individual acts in response to a direct order from another individual, usually an authority figure.

Compliance

The act of conforming to a request or demand, often studied in social psychology as a form of social influence.