Joshua Company Produces and Sells a Product That Has Variable

question 49

Multiple Choice

Joshua Company produces and sells a product that has variable costs of $7 per unit and fixed costs of $200,000 per year.If production increases from 20,000 units to 25,000 units,the total cost will ________.

• A) increase by $35,000
• B) decrease by $2 per unit
• C) decrease by $8 per unit
• D) stay the same

---

Definitions:

Essay

A short piece of writing on a particular subject, often expressing the author's personal point of view.

College Professor

An academic and often a researcher at a college or university who teaches and guides students in a specific field of study.

Information-Processing Models

Frameworks that describe the stages through which information passes to be encoded, stored, and retrieved from memory, analogous to a computer.

Computer's Operation

The functional processes and calculations performed by a computer in order to execute commands and run software applications.