At an Activity Level of 10,000 Units, Variable Costs Totalled

question 10

Multiple Choice

At an activity level of 10,000 units, variable costs totalled $35,000 and fixed costs totalled $20,800. If 16,000 units are produced and this activity is within the relevant range, then:

• A)fixed cost per unit would equal $5.58.
• B)total unit cost would equal $4.80.
• C)total costs would equal $55,800.
• D)total cost would equal $89,280.

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