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:

Injurious Falsehood

A legal claim involving the intentional spread of falsehoods about a person, business, or product, causing economic loss or damage to reputation.

Trade Libel

The publication of false statements about another’s product or business that causes economic loss, considered a form of defamation.

Trade Secret

Information, including formulas, practices, designs, instruments, or patterns, that is not generally known or readily ascertainable, and by which a business can obtain an economic advantage over competitors or customers.

Secret Formula

A proprietary method or recipe that is kept hidden to maintain competitive advantage or uniqueness.