Oaklis Company Has Provided the Following Data for Maintenance Cost

question 32

Multiple Choice

Oaklis Company has provided the following data for maintenance cost: Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to:

• A)$24,000 per year; $2.30 per machine hour
• B)$6,000 per year; $1.80 per machine hour
• C)$6,000 per year; $2.30 per machine hour
• D)$24,000 per year; $1.80 per machine hour

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Definitions:

Developing Nation

A term used to describe a country with a relatively low level of industrial and economic development.

Economies of Scale

Cost advantages that entities obtain due to their scale of operation, leading to a reduction in per-unit cost as production increases.

Nation-State

An independent political unit with specific boundaries, a stable population, governance structures, and the ability to engage in diplomatic relations with other political entities.

Just Cause

A criterion under the just war theory, which states that to be morally permissible, a war must be waged only for honorable motives.