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?
A) $24,126
B) $26,280
C) $27,090
D) $27,820
E) $28,626

Question

Quizplus · Accepted Answer

To find the total fixed costs, first calculate the total variable costs by multiplying the variable cost per unit ($11.20) by the number of units (5,600). This equals $62,720. Subtract the total variable costs from the total costs ($89,000 - $62,720) to find the total fixed costs, which is $26,280.

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