London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the company's average fixed costs per unit will be
A)$4.00 per unit.
B)$7.00 per unit.
C)$10.00 per unit.
D)$11.00 per unit.

Question

Quizplus · Accepted Answer

B)Calculations: 84,000 / 12,000 = $7.00

London Plastics Sells a Product for $15