Mantel Incorporated Began Producing Its New Line of Dolls at Its

question 79

Multiple Choice

Mantel Incorporated began producing its new line of dolls at its Connecticut plant in December of year 0.In year 1,it produced 30,000 dolls at a total cost of $385,000.In year 2,its production increased to 80,000 dolls at a total cost of $885,000.Assuming the cost structure was the same for both years,what must be the variable cost (c) and the fixed cost (F) per doll?

• A)F is less than $80,000,and c is greater than $7.
• B)F is greater than $60,000,and c is less than $5.
• C)F is less than $100,000,and c is greater than $9.
• D)F is greater than $110,000,and c is less than $6.

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Definitions:

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be legally enforceable.

Sale of Land

A legal transaction involving the transfer of ownership of land from one party to another in exchange for a price paid or to be paid.

Zoning

Zoning involves legally dividing land into distinct areas or zones, each with specific regulations regarding the types of buildings and activities permitted, to organize urban planning and development.

Police Power

Police power refers to the capacity of a state to regulate behaviors and enforce order within its territory for the betterment of the health, safety, morals, and general welfare of its inhabitants.