Question
6. Test Company derived the following cost function for the production of its product. Cost = $16,000 + $10X, where x is the number of
6. Test Company derived the following cost function for the production of its product.
Cost = $16,000 + $10X, where x is the number of units.
Next month, Test Company expects to produce 4,000 units.
Determine the total cost per unit to produce 4,000 units.
7.
Test Company derived the following cost function for the production of its product.
Cost = $16,000 + $10X, where x is the number of units.
Next month, Test Company expects to produce 4,000 units.
Suppose production is less than expected so that Test Company only produces 3,500 units. Total cost will
| Increase | ||
| Decrease | ||
| Remain unchanged | ||
| A incorrect answer because Blackboard requires four choices |
8.
Test Company derived the following cost function for the production of its product.
Cost = $16,000 + $10X, where x is the number of units.
Next month, Test Company expects to produce 4,000 units.
Suppose production is less than expected so that Test Company only produces 3,500 units. Total variable cost will
| Increase | ||
| Decrease | ||
| Remain unchanged | ||
| An incorrect answer because Blackboard requires four choices |
Note: Give your answer using dollar signs and state your answer to the nearest cent.
Example: $12.34 or $12.00
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
