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Montana Company manufactures chocolate candy. Its manufacturing costs are as follows: Annual fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . .

Montana Company manufactures chocolate candy. Its manufacturing costs are as follows:

Annual fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000

Variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2 per box of candy

1. Plot variable costs, fixed costs, and total costs on a graph for activity levels of 0 to 30,000 boxes of candy.

2. Plot a revenue line on the graph, assuming that Montana sells the chocolates for $5 a box.


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1 and 2 Graph Costs 70000 60000 5…View the full answer


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Accounting concepts and applications

Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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Question Details
Chapter # 21
Section: Practice Exercises
Problem: 38
Posted Date: December 28, 2011 04:30:11
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