The ﬁxed costs per unit are $10 when a company produces 10,000 units of product.What are the ﬁxed costs per unit when 8,000 units are produced?
A)$12.50.
B)$10.00.
C)$8.00.
D)$6.50.
E)$5.50.

Question

Quizplus · Accepted Answer

Fixed costs per unit do not change as the production level changes. Therefore, the fixed costs per unit will still be $10 when the company produces 8,000 units.

Fixed costs per unit = Total fixed costs / Number of units produced

Total fixed costs = $10 x 10,000 = $100,000

Fixed costs per unit = $100,000 / 10,000 = $10.00

To find the fixed costs per unit when 8,000 units are produced, we can use the same formula:

Fixed costs per unit = $100,000 / 8,000 = $12.50

Therefore, the answer is A) $12.50.

The ﬁXed Costs Per Unit Are $10 When a Company