Answer:
B
Explanation:
Variable costs are incurred only when a boat is manufactured such as material and direct labor. Thus variable costs will remain unchanged since it will costs the exact same amount to manufacture another identical boat. If it costs $4,000 in material and direct labor to manufacture boat A it will cost $4,000 to manufacture boat B. Fixed costs are sunk costs that will be incurred whether they manufacture 800 or 1,000 boats per year. The rent and admin costs will remain unchanged no matter how many boats are manufactured. But the fixed cost per boat will change. The total fixed costs are $80,000 (800 boats x $1,000 per boat fixed cost). If the manufacturing rate is increased to 1,000 boats per year, the per boat fixed cost will decrease to $800. Fixed costs remain at $80,000/1,000 boats = $800.
The best place that one should check when looking for the amount a company spent on purchasing long-term assets is the Investing section of the <u>Cashflow statement.</u>
<h3>What goes in the Investing section of the cashflow statement?</h3>
This is where cash transactions relating to the purchase and sale of fixed assets are recorded. Transactions involving securities of other companies go here as well.
If we want to see the amount spent on fixed assets therefore, we should look at the investing section as it will show the actual amount of cash spent on fixed assets.
Find out more on the cashflow statement at brainly.com/question/735261.
Answer:
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