JB Company Has Fixed Costs of $300 000

question 125

Multiple Choice

JB Company has fixed costs of $300 000. Total costs, both fixed and variable, are $378 000 when 40 000 units are produced. How much is the variable cost per unit? (Please round to the nearest cent.)

• A)$2.78
• B)$1.95
• C)$7.50
• D)$9.45

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Definitions:

Limited Partners

Limited partners are investors in a partnership with limited liability to the debts of the partnership, and whose involvement in management is restricted by law.

General Partner

An owner of a partnership who has unlimited personal liability for the debts and obligations of the partnership.

Limited Liability Limited Partnership

A form of partnership that offers limited liability to some partners (limited partners) and allows others (general partners) to operate the partnership with limited liability as well.

General Partners

Individuals in a partnership who are responsible for managing the business and are personally liable for its debts.