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

Determine the sum of a series using known formulas.

Apply principles of sequences and series to real-world problems.

Understand the concept and computation of partial sums in geometric sequences.

Apply knowledge of financial mathematics to calculate annuity balances and total payouts.

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