Fixed Cost Per Unit Is $9 When 20,000 Units Are

question 31

Multiple Choice

Fixed cost per unit is $9 when 20,000 units are produced and $6 when 30,000 units are produced. What is the total fixed cost when nothing is produced?

• A) $180,000
• B) $360,000
• C) $150,000
• D) $240,000

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Definitions:

Cash Receipts

The collection of cash, typically by a business from its customers, for goods or services provided.

Credit Sales

Credit sales are transactions where the customer purchases goods or services with an agreement to pay at a later date.

Cash Budget

A cash budget is a financial plan that estimates cash inflows and outflows over a specific period of time.

Housekeeping Budget

A financial plan allocating funds to maintain cleanliness, equipment, and supplies for housekeeping operations within an organization.