At Raines Company, Total Fixed and Variable Costs Are $480,000

question 257

Multiple Choice

At Raines Company, total fixed and variable costs are $480,000 at a production level of 140,000 units. The company has total fixed costs of $200,000.
-At Raines Company the variable cost per unit at 200,000 units is

• A) $1.43.
• B) $2.00.
• C) $3.43.
• D) $1.40.

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Definitions:

Acquisition Of Inventory

The process through which a business purchases goods to be sold, which may be raw materials for manufacturing or finished goods for resale.

Collection Of Cash

The process by which businesses gather or accumulate monetary payments received from customers.

Committed Operating Loan

A loan agreement where the lender agrees to provide a fixed amount of operating capital to a borrower for a specified term.

Non-Committed

Non-Committed in finance refers to facilities or funding that is not contractually guaranteed and can be withdrawn under certain conditions.