LL Company Produces and Sells a Product That Has Variable

question 106

Multiple Choice

LL Company produces and sells a product that has variable costs of $9 per unit and fixed costs of $200,000 per year.If production decreases from 50,000 to 40,000 units,the total cost per unit will ________.

• A) increase by $1
• B) increase by $13
• C) decrease by $1
• D) decrease by $14

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Definitions:

Population Segments

Specific groups within a larger population differentiated by characteristics like age, gender, income, etc., targeted by businesses for marketing.

Latchkey Children

Refers to children who return to an empty home after school or are left unsupervised for long periods because their parents are at work.

Generation X

The demographic cohort following the Baby Boomers, typically defined as being born from the mid-1960s to early 1980s.

Generational Cohort

A group of people of the same generation—typically have similar purchase behaviors because they have shared experiences and are in the same stage of life.