Oaklis Company Has Provided the Following Data for Maintenance Cost

question 15

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:

Term Insurance

A type of life insurance policy for which premiums are paid for a specified term and payment is made by the insurer only if the insured dies within the term period.

Cancel Policy

A cancel policy refers to the terms under which an agreement, insurance policy, or service contract can be terminated before its natural expiration date.

Advance Written-notice

A notification given in writing ahead of time, often a requirement in legal and contractual situations.

Incontestability Clause

A provision in a life insurance policy that prevents the insurer from disputing the policy's validity after it has been in force for a certain period, typically two years.