At a sales volume of 37,000 units, Maks Corporation's property taxes (a cost that is fixed with respect to sales volume) total $802,900. To the nearest whole cent, what should be the average property tax per unit at a sales volume of 40,300 units? (Assume that this sales volume is within the relevant range.)
A)$21.70
B)$20.22
C)$19.92
D)$20.81

Question

Quizplus · Accepted Answer

The property tax is a fixed cost, so it remains $802,900 regardless of the sales volume. To find the average property tax per unit at 40,300 units, divide $802,900 by 40,300, which equals approximately $19.92.

At a Sales Volume of 37,000 Units, Maks Corporation's Property