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:

Additional Assets

Assets acquired by a company beyond its existing assets, often to expand operations or diversify holdings.

Short-Term Debt

Refers to financial obligations that are due for repayment within one year.

Debt/Equity Ratio

The metric that specifies how a company allocates equity and debt in the financing of its assets.

Long-Term Debt Ratio

A ratio that compares the amount of long-term debt a company has to its total assets, indicating how much of the company's assets are financed with debt.