In a factory,the fixed costs per unit are $45 when 400 units are produced.If 450 units are produced,the fixed costs per unit would be

Question

Quizplus · Accepted Answer

Fixed costs per unit are given by total fixed costs divided by the number of units produced. 
When 400 units are produced, fixed costs per unit = $45. Therefore, total fixed costs = 400 * $45 = $18000. 
When 450 units are produced, total fixed costs remain the same (since fixed costs do not vary with the number of units produced), i.e., total fixed costs = $18000. 
Therefore, fixed costs per unit = total fixed costs / number of units produced = $18000 / 450 = $40. Hence, the answer is B.

In a Factory,the Fixed Costs Per Unit Are $45 When