29. Perez Inc. currently produces 70,000 units at a cost of $210,000. The cost is variable. Next year Perez Inc. expects to produce 85,000 units. Perez's relevant range for production is 65,000 to 105,000 units. If 85,000 units are produced next year, what is the expected variable cost?

A) $220,000

B) $230,000

C) $225,000

D) $255,000

30. Knowledge about the behavior of different costs in a service department such as maintenance can be used to ________.

A) plan costs

B) provide feedback to managers

C) make decisions about the most efficient use of resources

D) all of the above

31. In an economic downturn, a company could temporarily reduce or eliminate a(n) ________.

A) salaries of key personnel

B) lease payment

C) employee training program

D) insurance on corporate offices

32. Sorowskis Motel's cost function is given as:

Y = $80,000 + $7.40X

Where:

Y = annual custodial cost

X = number of guest-days of occupancy

In the current year, Sorowskis Motel has 6,000 guest days. In the next year, Sunrise Motel expects an occupancy level of 6,500 guest days. (All costs next year will remain in the same relevant range as the current year.) What is the expected fixed custodial cost for next year?

A) $7.40

B) $60,000

C) $80,000

D) $75,000

33. Suri Motel's cost function is given as:

Y = $110,000 + $3.50X

Where:

Y = annual custodial cost

X = number of guest-days of occupancy

In the current year, Suri Motel has 5,000 guest days. In the next year, Suri Motel expects an occupancy level of 6,000 guest days. (All costs next year will remain in the same relevant range as the current year.) What is the expected total custodial cost for next year?

A) $45,000

B) $131,000

C) $135,000

D) $150,000