Advantage,Inc.,a tennis equipment manufacturer,has variable costs of $0.60 per unit of product.In August,the volume of production was 27,000 units,and units sold were 21,800.The total production costs incurred were $30,600.What are the fixed costs per month?

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Quizplus · Accepted Answer

Fixed costs = Total production costs - (Variable costs per unit * Volume of production)= $30,600 - ($0.60 * 27,000)= $30,600 - $16,200= $14,400