At Raines Company, total fixed and variable costs are $480,000 at a production level of 140,000 units. The company has total fixed costs of $200,000.
-At Raines Company the fixed cost per unit at a production level of 200,000 units is
A) $3.43.
B) $2.40.
C) $1.00.
D) $1.43.

Question

Quizplus · Accepted Answer

Fixed costs remain constant regardless of the production level. Therefore, the fixed cost per unit at a production level of 200,000 units is $200,000 / 200,000 units = $1.00.

At Raines Company, Total Fixed and Variable Costs Are $480,000