Answer the Following Questions Using the Information Below:
the Mt

question 114

Multiple Choice

Answer the following questions using the information below:
The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows:
$$\begin{array} { l r } \text { Direct materials } & \$ 60 \\\text { Direct manufacturing labour } & 10 \\\text { Variable manufacturing overhead } & 18 \\\text { Fixed manufacturing overhead } & 32 \\\text { Sales commissions (2\% of sales) } & 4 \\\text { Administrative salaries } & \underline { 16 } \\\quad \text { Total } & \$ 140\end{array}$$
-What are the fixed costs per unit associated with Product SK2040?

• A)$32
• B)$48
• C)$52
• D)$102

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Definitions:

Dissenting Shareholder

A shareholder who disagrees with a corporate action, such as a merger or acquisition, and is typically afforded certain rights, including the right to be bought out by the corporation.

Management Buyouts

A transaction where a company's management team purchases the assets and operations of the business they manage, becoming the new owners.

Borrowed Funds

Money that has been loaned to a borrower, which they are obligated to repay, typically with interest.

Affirmative Majority Vote

A decision-making process where a proposition is passed if it receives more than half of the votes cast by those entitled to vote.