A company has fixed costs of $75,000 per month.If sales double from 5,000 to 10,000 units during the month,fixed costs will:
A)remain the same.
B)double.
C)be cut in half.
D)be none of the above.

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of changes in sales volume. Therefore, even though sales have doubled, the fixed costs will remain at $75,000 per month.

A Company Has Fixed Costs of $75,000 Per Month