Question

Selected operating data for Oakbrook Company in four independent situations are shown below:

a. What is the variable expense for situation A?
a) $111,000
b) $62,000
c) $53,200
d) $178,000

Answer 1

Without specific data for situation A, we cannot determine the variable expense from the provided options.

Step-by-step explanation:

To determine the variable expense for situation A for Oakbrook Company without the specific data provided in the independent situations, one would typically analyze the changes in total costs relative to changes in the level of output. If the information were available that shows the total costs at different output levels, the variable expense could be determined by taking the difference in total costs and dividing it by the change in output (since variable costs change with output). Unfortunately, without the specific data for situation A, we cannot definitively provide an answer to which choice represents the variable expense (a) $111,000, (b) $62,000, (c) $53,200, or (d) $178,000.