During the current year,Simpson Inc.incurred $5,000 fixed and $12,000 variable costs.If the number of units produced is halved next year,the company will incur $2,500 as fixed and $6,000 as variable costs.

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of the number of units produced, so they would still be $5,000. Variable costs would be halved to $6,000 if production is halved.

During the Current Year,Simpson Inc