Based on the Following Cost Data, Items Labeled (A) and (B)

question 86

Multiple Choice

Based on the following cost data, items labeled (a) and (b) in the table below are which of the following amounts, respectively? $$\begin{array} { | l | r | r | } \hline \text { Number of units: } & 1,500 & 3,000 \\\hline \text { Total cost: } & & \\\hline \text { Variable } & \$ 7,500 & \$ 15,000 \\\hline \text { Fixed } & \$ 6,000 & \$ 6,000 \\\hline & & \\\hline \text { Cost per unit: } & & \\\hline \text { Variable } & \$ 5 & \text { (a) } \\\hline \text { Fixed } & \$ 4 & \text { (b) } \\\hline\end{array}$$

• A)(a) = $3.00; (b) = $3.00
• B)(a) = $5.00; (b) = $4.00
• C)(a) = $2.50; (b) = $2.00
• D)(a) = $5.00; (b) = $2.00

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Definitions:

Valid Signature

a signature that meets legal requirements, signifying agreement, consent, or authenticity of a document.

UCC Section 3-401

A provision within the Uniform Commercial Code that pertains to the authorization and validity of signatures on negotiable instruments, contributing to their enforceability.

Negotiable Instrument

A signed document promising payment to a specified person or the bearer under certain conditions, like checks, drafts, and promissory notes.

Indorser's Liability

The responsibility borne by a person who endorses a negotiable instrument, such as a check, potentially making them liable for its payment.