Answer the Following Questions Using the Information Below

question 177

Multiple Choice

Answer the following questions using the information below:
For Divaxo Company, labor-hours are 30,000 and wages $130,000 at the high point of the relevant range, and labor-hours are 18,000 and wages $85,000 at the low point of the relevant range.
-What is the slope coefficient?

• A) $4.45
• B) $3.75
• C) $4.33
• D) $4.72

Understand the concept of relevant range and its implications for cost behavior.

Understand the concept of relevant range of activity and its importance in cost analysis.

Calculate variable cost per unit within a given relevant range.

Determine contribution margin per unit and its significance in pricing and profit planning.

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Definitions:

Government Expenditures

The total amount of money spent by the government within a specific period, including spending on goods, services, and public projects.

Government Expenditures

The total amount of spending by the government for its operations, public services, and the acquisition of goods and services.

Market Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices.

Deadweight Loss

The loss of total social surplus that occurs when the market outcome is not efficiently allocated, typically due to market failures or interventions.