The following data pertain to costs at Richardson Company:

-If Richardson Company increases production to 50,000 units then the fixed cost per unit will be
A) $15.00.
B) $18.75.
C) $21.50.
D) $17.20.

Question

The following data pertain to costs at Richardson Company:
 
-If Richardson Company increases production to 50,000 units then the fixed cost per unit will be
A) $15.00. 
B) $18.75. 
C) $21.50. 
D) $17.20.

Quizplus · Accepted Answer

Fixed costs per unit decrease as production volume increases because the total fixed costs are spread over more units.

The Following Data Pertain to Costs at Richardson Company