Based on Predicted Production of 12,000 Units,a Company Anticipates $150,000

question 163

Multiple Choice

Based on predicted production of 12,000 units,a company anticipates $150,000 of fixed costs and $123,000 of variable costs.The flexible budget amounts of fixed and variable costs for 10,000 units are:

• A)$125,000 fixed and $102,500 variable.
• B)$125,000 fixed and $123,000 variable.
• C)$102,500 fixed and $150,000 variable.
• D)$150,000 fixed and $123,000 variable.
• E)$150,000 fixed and $102,500 variablE.Fixed costs remain at $150,000

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, considering the time value of money.

Hiring Capital

The resources, often financial, that an organization allocates to the process of recruiting and acquiring new employees or talent.

Future Profits

Expected gain in financial terms that a business anticipates receiving over a forthcoming period, based on current strategies, market conditions, and operations.

Hiring Labor

The process of finding, evaluating, and employing individuals to work for a business or organization.