Manley Co Manufactures Office Furniture

question 63

Multiple Choice

Manley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of $86,625. In its slowest month, the company made 1,800 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs are:

• A) $61,875
• B) $33,875
• C) $24,750
• D) cannot be determined from the data given

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Definitions:

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade patterns.

Specialize

To specialize means focusing on a narrow area of knowledge or skill within a wider field, aiming to become an expert or highly skilled in that specific area.

Opportunity Cost

Overlooking potential gains available from different alternatives by settling on one choice.

Muffin

A small, baked good often sweetened and sometimes containing fruits, nuts, or chocolate, typically enjoyed as a snack or quick breakfast.