Franco Company Has Variable Costs of $0

question 1

Multiple Choice

Franco Company has variable costs of $0.65 per unit of product.In October,the volume of production was 24,000 units and units sold were 23,000.The total production costs incurred were $32,200.What are the fixed costs per month?

• A) $16,600
• B) $17,250
• C) $8,400
• D) $15,600

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Definitions:

Deduction

A logical process where a conclusion follows necessarily from the given premises; moving from general principles to specific instances.

Scope

The extent or range of view, reach, or application, often defining the boundaries of a project, study, or activity.

Parsimony

A principle in science and philosophy that prefers the simplest explanation that accounts for all observed phenomena, often referred to as Occam's razor.

Theory of Reasoned Action

A theory that predicts an individual's behavior based on their intention to perform the behavior, which is determined by attitudes towards the behavior and subjective norms.