At an Activity Level of 9,200 Machine-Hours in a Month,Nooner

question 106

Multiple Choice

At an activity level of 9,200 machine-hours in a month,Nooner Corporation's total variable production engineering cost is $761,300 and its total fixed production engineering cost is $154,008.What would be the total production engineering cost per unit,both fixed and variable,at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range.

• A)$98.42
• B)$99.49
• C)$99.31
• D)$98.96

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Definitions:

Natural Rate

The rate of a quantity, such as unemployment or interest, that prevails when the economy is in a long-term equilibrium.

Classical Dichotomy

The theoretical separation of nominal and real variables in classical economics, suggesting that changes in the money supply only affect nominal variables.

Inflation Rate

An upward movement in the overall price level of goods and services in an economy over time.

Aggregate Demand

Aggregate request for products and services in an economy, measured at a particular general price level throughout a defined time interval.