Fixed cost per unit is $9 when 20,000 units are produced and $6 when 30,000 units are produced. What is the total fixed cost when nothing is produced?
A) $180,000
B) $360,000
C) $150,000
D) $240,000

Question

Quizplus · Accepted Answer

The total fixed cost remains constant regardless of the number of units produced. At 20,000 units, the fixed cost per unit is $9, so the total fixed cost is 20,000 * $9 = $180,000.

Fixed Cost Per Unit Is $9 When 20,000 Units Are