A company's flexible budget for 12,000 units of production showed sales,$48,000; variable costs,$18,000; and fixed costs,$16,000.The fixed costs expected if the company produces and sells 16,000 units is:

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of the level of production or sales volume. Therefore, if the fixed costs are $16,000 for 12,000 units, they will remain $16,000 for 16,000 units.

A Company's Flexible Budget for 12,000 Units of Production Showed