Strait Co Manufactures Office Furniture

question 107

Multiple Choice

Strait Co. manufactures office furniture. During the most productive month of the year, 3,000 desks were manufactured at a total cost of $59,000. In the month of lowest production the company made 1,125 desks at a cost of $38,000. Using the high-low method of cost estimation, total fixed costs are

• A) $21,000
• B) $25,400
• C) $42,000
• D) $13,000

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Definitions:

Risk-Taking Behavior

The propensity to engage in activities or decisions that have the potential for significant loss or gain, typically evaluated in the context of business, investment, and personal choice.

Managerial Knowledge

The information and skills needed by individuals in managerial positions to make informed decisions and manage teams effectively.

Internal/Cost Dimensions

Factors that relate to the inner workings and expenses of a business or project.

Tolerance for Ambiguity

An individual's comfort level with uncertainty, complexity, and situations that lack clear direction or predictability.