At a production level of 5,600 units a project has total costs of €89,000.The variable cost per unit is €11.20.What is the amount of the total ﬁxed costs?

Question

Quizplus · Accepted Answer

The total variable costs can be calculated by multiplying the variable cost per unit (€11.20) by the number of units (5,600), which equals €62,720. Subtracting this from the total costs (€89,000) gives the total fixed costs: €89,000 - €62,720 = €26,280.

At a Production Level of 5,600 Units a Project Has