Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18,000.If no units are sold, how much cost would the company incur?

Question

Quizplus · Accepted Answer

Regardless of whether any units are sold or not, fixed costs still have to be incurred. In this case, the fixed costs are $18,000. Therefore, the company would incur this amount even if no units are sold.

Assume a Sales Price Per Unit of $25, Variable Cost