The Highest Value of Total Cost Was $70,000 in June

question 267

Multiple Choice

The highest value of total cost was $70,000 in June for Acai Beverages,Inc.Its lowest value of total cost was $52,000 in December.The company makes a single product.The production volume in June and December were 13,000 and 7000 units,respectively.What is the variable cost per month? (Round your answer to the nearest cent.)

• A) $1.38 per unit
• B) $2.57 per unit
• C) $3.00 per unit
• D) $11.67 per unit

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Definitions:

Insurable Interest

The requirement that a person stands to suffer a financial loss or certain other kinds of losses if the insured event occurs.

Retains

implies holding onto or keeping in possession, often used in legal and financial contexts to describe holding onto services, rights, or properties.

Shipment Contract

An agreement between a seller and buyer where the seller is obligated to ship the goods and the buyer is obligated to accept and pay for them, under specified terms.

Title Passes

The transfer of ownership of property from one party to another, typically upon satisfaction of specified conditions.