Bowman, Inc

question 45

Multiple Choice

Bowman, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $800,000 and the cost per unit manufactured totaled $11. On the basis of this information, how much cost would the firm anticipate at an activity level of 205,000 units?

• A) $2,235,000.
• B) $2,222,000.
• C) $2,214,000.
• D) $2,200,000.
• E) None of the other answers is correct.

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Definitions:

False Analogy

A logical fallacy where an analogy is used to argue or conclude something, but the analogy is misleading or incomparable due to significant differences between the two situations.

Speaker Attack

A form of criticism or assault directed towards the person speaking, rather than addressing the argument itself.

Argumentum Ad Hominem

A fallacy in which an argument is rebutted by attacking the character, motive, or other attributes of the person making the argument, rather than addressing the substance of the argument itself.

Argumentum from Authority

A form of argument where something is declared true because it is backed by someone regarded as an authority on the matter.