Wu Company Incurred $40,000 of Fixed Cost and $50,000 of Variable

question 110

Multiple Choice

Wu Company incurred $40,000 of fixed cost and $50,000 of variable cost when 4,000 units of product were made and sold. If the company's volume doubles,the total cost per unit will:

• A) stay the same.
• B) decrease.
• C) double as well.
• D) increase but will not double.

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Definitions:

UCC

The Uniform Commercial Code represents an all-encompassing series of legal directives that control all forms of commercial transactions within the U.S.

Contractual Duties

Obligations that parties are legally bound to perform as specified in a contract.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, which governs the sale of goods between parties based in different countries.

Unliquidated Debt

A debt for which the exact monetary value has not been determined, often due to the nature of the claim or disputes over the amount.