Question

Fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced. What is the total fixed cost when nothing is produced? a.$12 b.$130,000 c.$200,000 d.$175,000

Answer 1

Answer:

The correct answer is D.

Explanation:

Giving the following information:

The fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced.

Total fixed costs= 7*25,000= 175,000

Total fixed costs= 5*35,000= 175,000

Fixed costs= $175,000