Final answer:
The initial question about Bonita Inc's variable manufacturing overhead costs being $23,200 cannot be answered with the information provided. Instead, the provided examples illustrate the importance of understanding revenues and variable costs in business decision-making, with the decision to continue or shut down a business dependent on whether revenues cover variable costs.
Step-by-step explanation:
The question stated for Bonita Inc doesn't provide enough information to be answered with a simple true or false. However, the query relates to an important concept in business accounting, which is the calculation of variable and fixed costs in relation to revenues. Using the provided secondary information, we can illustrate the significance of understanding these costs in decision-making for businesses.
When a center earns revenues of $20,000 and the variable costs are $15,000, it indicates that the center is making more money than the costs that vary with production, leading to a contribution margin of $5,000. This implies that after variable costs are covered, there are still revenues available to cover fixed costs and potentially generate a profit. Therefore, the center should continue in business.
However, if the center earns revenues of $10,000 and the variable costs are $15,000, the center is not covering its variable costs and is thus operating at a loss. In this scenario, unless there are strategic reasons to operate at a loss, the center should consider shutting down to minimize losses.
To answer question 23 from the information provided, the costs that are typically measured on a per-unit basis include average cost, average variable cost, variable costs, and marginal cost. Fixed costs, however, are usually not measured on a per-unit basis since they do not vary with the level of production. Question 24 defines production technology as the methods or processes used in the creation of goods or services, which significantly affect various cost measures.