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:

Asch's Experiments

Studies conducted by Solomon Asch that demonstrated the power of conformity in groups, where individuals often go along with a group's consensus even when it is clearly incorrect.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or societal standards.

Ostracized

The act of excluding or ignoring someone from a social group, leading to feelings of isolation for the individual concerned.

Deviant

Behaviors or actions that deviate from the accepted norms or standards within a society or group, which can be either positive or negative.