Bacho Corporation Reports That at an Activity Level of 5,400

question 65

Multiple Choice

Bacho Corporation reports that at an activity level of 5,400 units, its total variable cost is $416,934 and its total fixed cost is $142,560.
-What would be the total variable cost at an activity level of 5,500 units? Assume that this level of activity is within the relevant range.

• A) $424,655
• B) $559,494
• C) $416,934
• D) $145,200

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Definitions:

Salts

Ionic compounds resulting from the neutralization reaction of an acid and a base, characterized by the presence of at least one metal or cation and one non-metal anion.

Sulphuric Acid

A highly corrosive strong mineral acid with the chemical formula H2SO4, used in various industrial processes.

Nitric Acid

A highly corrosive mineral acid (HNO3) used in the manufacture of fertilizers, explosives, and in various industrial processes.

PANs

Personal Area Networks (PANs) are networking technologies for interconnecting devices within a close proximity, typically within a few meters, such as computers, smartphones, and personal digital assistants.