The Glow-in-the-Dark Lamp Company produces 3.2 million light bulbs per year at a per unit cost of $0.50.If its total variable cost is $1.2 million,its

Name: The Glow-in-the-Dark Lamp Company produces 3.2 million light bulbs per year at a per unit cost of $0.50.If its total variable cost is $1.2 million,its
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Total fixed cost is calculated by subtracting total variable cost from total cost. Total cost is 3.2 million bulbs * $0.50 = $1.6 million. Total fixed cost = $1.6 million - $1.2 million = $400,000.

The Glow-In-The-Dark Lamp Company Produces 3