In a Particular Process, the Fixed Costs Are Calculated at $40,000

question 12

Multiple Choice

In a particular process, the fixed costs are calculated at $40,000 and the variable costs at $1.50 per unit.
If 10,000 units are to be produced, what is the average cost per unit?

• A) $1.50
• B) $2.00
• C) $4.00
• D) $5.50
• E)none of the above

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Definitions:

Amnesia

Amnesia is a loss of memory due to brain injury, disease, or psychological trauma, affecting the ability to recall past events.

Obsessive Compulsive Disorder (OCD)

A mental disorder characterized by intrusive thoughts (obsessions) that produce uneasiness and repetitive behaviors (compulsions) aimed at reducing these thoughts.

Post-Traumatic Stress Disorder (PTSD)

A psychological disorder caused by either undergoing or observing a distressing incident, identified by involuntary memories, bad dreams, and intense worry.

Seasonal Affective Disorder (SAD)

A type of depression that occurs at a specific time of year, usually in winter.