Exhibit 5-7
Last month,Ellison Industries sold its product for $100 per unit.Fixed production costs were $50,000,and variable production costs amounted to $21 per unit.Fixed selling and administrative costs totaled $20,000,and variable selling and administrative costs amount to $3.00 per unit.Dawson produced and sold 6,000 units last month.
-Refer to Exhibit 5-7.Which of the following amounts represents total fixed costs?
A)$20,000
B)$50,000
C)$70,000
D)$144,000
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Fixed production costs and fixed selling and administrative costs add up to $50,000 + $20,000 = $70,000, which is the total fixed costs.

Exhibit 5-7 Last Month,Ellison Industries Sold Its Product for $100 Per Unit.Fixed