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Wednesday, July 15, 2015

For Lobes Company, the relevant range of production is 40-80% of capacity

BE5-2 For Lobes Company, the relevant range of production is 40-80% of capacity. At 40% of capacity, a variable cost is $4,000 and fixed cost is 6,000. Diagram the behavior of each cost within the relevant range assuming the behavior is linear.

Click here for the solution: For Lobes Company, the relevant range of production is 40-80% of capacity