Swisher,Incorporated Reports the Following Annual Cost Data for Its Single

question 4

Multiple Choice

Swisher,Incorporated reports the following annual cost data for its single product:
$\begin{array}{ll}\text { Normal production level } & 30,000 \text { units } \\\text { Direct materials } & \$ 6.40 \text { per unit } \\\text { Direct labor } & \$ 3.93 \text { per unit } \\\text { Variable overhead } & \$ 5.80 \text { per unit } \\\text { Fixed overhead } & \$ 150,000 \text { in total }\end{array}$

This product is normally sold for $48 per unit.If Swisher increases its production to 50,000 units,while sales remain at the current 30,000 unit level,by how much would the company's gross margin increase or decrease under absorption costing?

• A) $60,000 decrease.
• B) $90,000 decrease.
• C) There is no change in gross margin.
• D) $90,000 increase.
• E) $60,000 increase.

Recognize and avoid common errors in graphing data.

Describe the importance of visuals in enhancing understanding and retention of information.

Explain the significance of scaling and how scale distortion can mislead the reader.

Discuss methods to avoid misrepresentation in visuals.

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Definitions:

Alcohol

A psychoactive substance that is commonly consumed in beverages and can affect the central nervous system, leading to altered mood, behavior, and cognitive functions.

Posttraumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, leading to symptoms like flashbacks, nightmares, and severe anxiety.

Battle Fatigue

An outdated term for what is now often referred to as PTSD, related to psychological distress from combat.

Shell Shock

An outdated term once used to describe the psychological trauma experienced by soldiers during war, now understood as a form of post-traumatic stress disorder (PTSD).