At a production level of 5,600 units,a project has total costs of $89,000 and a variable cost per unit of $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

The total variable costs can be calculated by multiplying the variable cost per unit by the number of units produced: $11.20 * 5,600 = $62,720. To find the total fixed costs, subtract the total variable costs from the total costs: $89,000 - $62,720 = $26,280.

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