Total fixed costs for Excelsior Corporation are $600,000.Total costs,both fixed and variable,are $750,000 if 125,000 units are produced.The fixed cost per unit at 300,000 units would be:
A)$6.00/unit.
B)$0.50/unit.
C)$4.80/unit.
D)$2.00/unit.

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of the number of units produced. Therefore, the fixed cost per unit at 300,000 units is $600,000 / 300,000 units = $2.00/unit.

Total Fixed Costs for Excelsior Corporation Are $600,000