Multiple Choice Questions (30 Points) Please mark your answer clearly! 1. A company's normal operating activity is to produce 500 units per month. During its first two months of operations, it produced 100 units per month. Following a great article about the product, product spiked to 1,000 units per month, but the spike only lasted for one month. Which of the following best approximates the company's relevant range? A. 450-510 Units B. 100-1,000 Units C. 500-1,000 Units D. 100,500, or 1,000 When Greenway, Inc. sells 48,000 units, its total fixed cost is $115,200. What is its total fixed cost when it sells 54,000 units? 2. A. $100,800 B. $115,200 C. 129,600 D. 134,800 Georgia uses the high-low method of estimating costs. Georgia had total costs of $50,000 at its lowest level of activity, when 5,000 units were sold. When, at its highest level of activity, sales equaled 10,000 units, total costs were $78,000. Georgia would estimate variable cost per unit as: 3. A. $14.00 B. $9.10 C. $5.60 D. $10.54 Sparrow, Inc. used the high-low method to estimate that its fixed costs are $105,000. At its low level of activity, 50,000 units, average cost was $2.60 per unit. What would Sparrow predict as its 4. variable cost per unit? A. $0.50 B. $1.55 C. $2.10 D. $2.60 Sugar Corp. has a selling price of $20, variable costs of $12 per unit, and fixed costs of $25,000. Maple expects profit of $300,000 at its anticipated level of production. If Sugar sells 5,000 units more than expected, how much higher will its profits be? . A. $ 40,000 B. $100,000 C. $ 60,000 D. $300,000