Figure 2-12 Information from the Records of the Conundrum Company

question 50

Multiple Choice

Figure 2-12 Information from the records of the Conundrum Company for September 2014 was as follows:
Conundrum Corporation produced 20,000 units.
Refer to Figure 2-12. If production increased to 32,000 units next year, what is the effect on variable product costs per unit and total product costs per unit respectively?

• A) remain the same; remain the same
• B) remain the same; decrease
• C) increase; remain the same
• D) decrease; increase

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Definitions:

Original Cost

The initial purchase price or production cost of an asset or investment, not including subsequent expenses or depreciation.

Designer Dresses

High-fashion garments created by professional fashion designers, often noted for their uniqueness, quality, and price.

Sketches

Preliminary drawings or outlines made quickly to capture the basic elements and structure of a subject before detailed work begins.

Detailed

involves providing an elaborate or thorough account or explanation of a particular subject or thing.