Select the correct option from the following: 1) The relevant range of Orleans Company is between 100,000
Question:
Select the correct option from the following:
1) The relevant range of Orleans Company is between 100,000 units and 180,000 units per month. If the company produces beyond 180,000 units per month:
A) The fixed costs will remain the same, but the variable cost per unit may change.
B) The fixed costs may change, but the variable cost per unit will remain the same.
C) The fixed costs and the variable cost per unit will not change.
D) Both the fixed costs and the variable cost per unit may change.
2) Porterhouse Company incurs both fixed and variable production costs. Assuming the production is within the relevant range, if volume goes up by 20%, then the total variable costs would:
A) Increase by 20%.
B) Remain the same.
C) Increase by an amount less than 20%.
D) Decrease by 20%.
3) Porterhouse Company incurs both fixed and variable production costs. Assuming the production is within the relevant range, if volume goes up by 20%, then the total fixed costs would:
A) Increase by 20%.
B) Remain the same.
C) Increase by an amount less than 20%.
D) Decrease by 20%.
4) The high-low method is used to:
A) Determine the highest price that can be charged for a product.
B) Separate mixed costs into their variable and fixed components.
C) Identify the relevant and irrelevant costs of a business.
D) Determine the sales level at highest capacity.
5) Porterhouse Company incurs both fixed and variable production costs. Assuming the production is within the relevant range, if volume goes up by 20%, then the total costs would:
A) Increase by 20%.
B) Remain the same.
C) Increase by an amount less than 20%.
D) Decrease by 20%.
A Survey of Mathematics with Applications
ISBN: 978-0134112107
10th edition
Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde