In a factory, the fixed costs are $6,000 when 600 units are produced. If 900 units are produced, the fixed costs per unit would be

Question

Quizplus · Accepted Answer

Fixed costs are constant regardless of the number of units produced. Therefore, to find the fixed cost per unit, we simply divide the total fixed costs by the number of units produced. In this case, $6,000 divided by 900 units is $6.67, so the answer is D.

In a Factory, the Fixed Costs Are $6,000 When 600