Answer the Following Questions Using the Information Below

question 83

Multiple Choice

Answer the following questions using the information below:
Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers:

-The plant has capacity for 3,000 axles and is considering expanding production to 3,000 axles. What is the total cost of producing 3,000 axles?

• A)$135,000
• B)$225,000
• C)$175,000
• D)$255,000

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Definitions:

Bonus

Additional compensation given to employees as a reward for their performance, often beyond their regular earnings.

Capital Balances

Refers to the amount of money that the owners of a company have invested in the business or retained from profits over time.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.

Closing the Revenue

The process of finalizing all revenue accounts and transferring their balances to permanent accounts at the end of an accounting period.