Emilio Corporation reports that at an activity level of 3,400 units, its total variable cost is $59,058 and its total fixed cost is $101,150.
-What would be the average fixed cost per unit at an activity level of 3,500 units? Assume that this level of activity is within the relevant range.
A)$29.75
B)$47.12
C)$35.26
D)$28.90

Question

Quizplus · Accepted Answer

Average fixed cost per unit = Total fixed cost F1F1F1S1F1F1F10 Total activity
= $101,150 F1F1F1S1F1F1F10 3,500 units
= $28.90 per unit

Emilio Corporation Reports That at an Activity Level of 3,400