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Jeong Company incurs both fixed and variable production costs. Assuming that production is within the relevant range, if volume goes up by 28%, then the
Jeong Company incurs both fixed and variable production costs. Assuming that production is within the relevant range, if volume goes up by 28%, then the total costs would A. remain the same B. decrease by 28% C. increase by 28% D. increase by an amount less than 28% The highest value of total cost was $820,000 in June for Horchata Beverages, Inc. Its lowest value of total cost was $530,000 in December. The company makes a single product. The production volume in June and December were 14,000 and 6,000 units, respectively. What is the fixed cost per month? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) A. $312,500 B. $290,000 C. $6,000 D. $530,000 Viper Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $4,000 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $27 per unit of variable costs, plus an increase in fixed costs of $280 per month. The marketing manager believes that they would be able to increase the sales price of the radio from $280 to $300. Viper sells 40 radios per month. If Viper decides to further process the radio, monthly operating income would A. increase by $800 B. decrease by $560 C. decrease by $4,560 O O D. increase by $4,560 Determinant Company is a price - taker and uses a target - pricing approach. Refer to the following information: Production volume Market price Desired operating income Total assets 600,000 units per year $34 per unit 16% of total assets $13,700,000 What is the target full product cost in total for the year? Assume all units produced are sold. A. $13,700,000 B. $96,000 C. $2,192,000 D. $18,208,000
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