If the Fixed Cost to Produce an Item Is $500

question 33

Multiple Choice

If the fixed cost to produce an item is $500, labor is $2.00 per unit and materials are $2.50 per unit; then the unit cost for an order of 1,000 would be:

• A) $6.50
• B) $5,000
• C) $5.00
• D) $504.50

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Definitions:

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