A Soft Drink Bottler Incurred the Following Factory Utility Cost

question 75

Multiple Choice

A soft drink bottler incurred the following factory utility cost: $3,936 for 800 cases bottled and $3,988 for 900 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

• A)$4.92
• B)$0.52
• C)$4.43
• D)$4.66

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Definitions:

Financing Activities

Transactions that involve raising capital (e.g., issuing stock or bonds) and repaying investors (e.g., dividends, loan repayments).

Short-Term Borrowings

Loans and other forms of financial indebtedness that are due for repayment within one year or less.

Operating Expenses

All necessary expenses involved in running a business, excluding the cost of goods sold, such as rent, utilities, and payroll.

Operating Expenses

Costs associated with the normal operations of a business, including sales and marketing, research and development, and administrative expenses.