Use the Following to Answer Question 205 $\text { Table: Lilly's Apple Orchard }$

question 137

Multiple Choice

Use the following to answer question 205: $\text { Table: Lilly's Apple Orchard }$
$\begin{array}{lr}\hline \begin{array}{l}\text { Quantity } \\\text { of Apples } \\\text { (bushels) }\end{array} &{\boldsymbol{VC}} \\\hline 0 & \$ 0 \\1 & 40 \\2 & 70 \\3 & 80 \\4 & 130 \\5 & 190 \\6 & 260 \\7 & 340 \\8 & 430 \\\hline\end{array}$

-(Table: Lilly's Apple Orchard) Use Table: Lilly's Apple Orchard.Lilly is the price-taking owner of an apple orchard;the orchard's variable costs are given in the table.Her orchard has fixed costs of $30.If the price of a kilogram of apples is $85,we would expect the total industry output to _____ and Lilly's output to _____ in the long run.

• A) rise;rise
• B) fall;fall
• C) fall;rise
• D) rise;fall

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Definitions:

Manufacturing Overhead

All indirect factory-related costs incurred while producing a product, excluding direct materials and direct labor.

Work in Process

Inventory that includes the materials, labor, and overhead costs for products that are in the production process but not yet completed.

Journal Entries

Records in accounting that document financial transactions in the books of accounts.

Raw Materials

Raw materials are the basic substances or components used in the manufacturing process to produce finished goods.