Mario Company has total fixed costs of $570,000. Total fixed and variable costs are $622,500 at a production level of 205,000 units. The fixed cost per unit at a production level of 300,000 units is
A)$2.78
B)$1.90
C)$2.08
D)$3.04

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of the production level. Therefore, the fixed cost per unit at 300,000 units is $570,000 / 300,000 = $1.90.

Mario Company Has Total Fixed Costs of $570,000