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A company has the following budget formula for annual electricity expense in its shop: Expense = $7,200 + (Units produced × $0.60)

<p><em><strong>If management expects to produce20,000 units during February, for the purpose of performance evaluation, what amount of expenses should the company expect to incur in February? </strong></em></p> <p><em><strong>A. $7,200 </strong></em></p> <p><em><strong>B. $12,000 </strong></em></p> <p><em><strong>C. $12,600</strong></em></p> <p><em><strong>D. $19,200</strong></em></p>

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Question added by Deleted user
Date Posted: 2015/01/10
Amir Ikram Qureshi
by Amir Ikram Qureshi , Manager Finance , Marksman, Promovers Network & Sentient

D $19,200 

Formula  $7,200 + (unit produced x .60)

=7,200+ (20,000x0.6)

=7,200 +12,000

=19,200

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