A company has fixed costs of $60,000 per month. If sales double from 6,000 to 12,000 units during the month, fixed costs in total will
A)double.
B)remain the same.
C)be cut in half.
D)be none of the above.

Question

Quizplus · Accepted Answer

Fixed costs do not change with the level of sales, so they will remain the same at $60,000 regardless of whether sales are at 6,000 units or 12,000 units.

A Company Has Fixed Costs of $60,000 Per Month