Total fixed costs for Randolph Manufacturing are $804,000. Total costs, including both fixed and variable, are $1,040,000 if 160,000 units are produced. The fixed cost per unit at 188,500 units would be closest to
A)$1.25/unit.
B)$5.52/unit.
C)$4.27/unit.
D)$5.03/unit.

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of the number of units produced. Therefore, the fixed cost per unit at 188,500 units is $804,000 / 188,500 units = $4.27/unit.

Total Fixed Costs for Randolph Manufacturing Are $804,000