Units produced 12 000 15 000
Direct materials $36 000 $45 000
Based on the above data,at the production level of 10 000 units,the fixed costs per unit are $5 per unit and if the firm produced 8000 units the fixed cost per unit would remain constant at $5.Graduate Attribute: Problem Solving

Question

Quizplus · Accepted Answer

Fixed costs per unit change with the level of production. If fixed costs are $5 per unit at 10,000 units, they would increase per unit if production decreases to 8,000 units, as total fixed costs remain constant.

Units Produced 12 000 15 000