Question
For Lodes Company, the relevant range of production is 40-80% of capacity. At 40% of capacity, a variable cost is $4,000 and a fixed cost
For Lodes Company, the relevant range of production is 40-80% of capacity. At 40% of capacity, a variable cost is $4,000 and a fixed cost is $6,000.
Explain the behavior of each cost within the relevant range assuming the behavior is linear.
I don't understand how to answer this question. I've been rereading this chapter and it still isn't making sense what kind of answer they are looking for.
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College Accounting Chapters 1-27
Authors: James A. Heintz, Robert W. Parry
23rd edition
1337794759, 978-1337794756
