If total costs are $27,000 and $36,000 for activity levels of 5,000 and 8,000, respectively, how much are fixed costs?

Name: If total costs are $27,000 and $36,000 for activity levels of 5,000 and 8,000, respectively, how much are fixed costs?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Fixed costs are the same at all activity levels. The difference in total costs between the two activity levels is due to variable costs. Variable costs are $36,000 - $27,000 = $9,000. Fixed costs are $27,000 - $9,000 = $12,000.

If Total Costs Are $27,000 and $36,000 for Activity Levels