Huntsman Company's Variable Selling and Administrative Expenses Are $48,000 at a Production

question 74

Multiple Choice

Huntsman Company's variable selling and administrative expenses are $48,000 at a production level of 6,000 units.If the production level is 8,000 units,what are the variable selling administrative expenses?

• A) $48,000
• B) $56,000
• C) $64,000
• D) $80,000

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Definitions:

Traceable Fixed Expense

Fixed costs that can be directly associated with a specific product, department, or segment of the business.

Net Operating Income

The total profit of a business after operating expenses but before deducting taxes and interest.

Sales Forecast

An estimate of the amount of products or services a company expects to sell during a specific period, based on historical data, market analysis, and other factors.

Unit Sales

The quantity of items or products sold, not taking into account the revenue generated from these sales.