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

question 56

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.

---

Definitions:

Center Link

A component in the steering system of a vehicle that connects the steering box to the wheel spindles.

Rack and Pinion

A type of linear actuator that converts rotational motion into linear motion using a circular gear (the pinion) engaging a linear gear (the rack).

Recirculating Ball

A type of steering system mechanism that utilizes a series of balls to reduce friction and provide smoother steering control.

Belt-driven

Describes mechanisms or devices powered by a belt, which transfers movement and power from one pulley to another.