At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total $733,400.To the nearest whole cent, what should be the average property tax per unit at a sales volume of 37,300 units? (Assume that this sales volume is within the relevant range.)

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Quizplus · Accepted Answer

The property tax is a fixed cost, so it remains the same regardless of the sales volume. To find the average property tax per unit at 37,300 units, divide the total property tax ($733,400) by 37,300 units, which equals approximately $19.66 per unit.

At a Sales Volume of 38,000 Units, Tirri Corporation's Property