At an Activity Level of 10,000 Units, Variable Costs Totaled

question 20

Multiple Choice

At an activity level of 10,000 units, variable costs totaled $35,000 and fixed costs totaled $20,800. If 16,000 units are produced and this activity is within the relevant range, then:

• A) total cost would equal $89,280.
• B) total unit cost would equal $4.80.
• C) fixed cost per unit would equal $5.58.
• D) total costs would equal $55,800.

Recognize the influence of an object's shape and functionality on the selection and arrangement of views.

Identify the view that best represents the important aspects of an object.

Understand technical abbreviations and symbols used in technical drawings.

Grasp the concept of auxiliary views and their purpose in showing additional details.

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Definitions:

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Risk Adjustment

A process used in finance and insurance to modify predictions or values based on known risks or uncertainties to make them more accurate or representative.

Net Present Value

A financial metric used to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows over a period of time.