Axelrod Company Has Fixed Costs of $250 000

question 6

Multiple Choice

Axelrod Company has fixed costs of $250 000. Highest production volume this year was in January when there were 100 000 units produced and total costs of $550 000. How much is the variable cost per unit? (Please round all amounts to the nearest cent.)

• A)$5.50
• B)$3.00
• C)$3.50
• D)$2.50

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Definitions:

Supply Assurance

The strategic approach and practices put in place by a company to ensure consistent and reliable delivery of essential goods and services, minimizing disruption in the supply chain.

Stringent Quality

Strict and precise standards and procedures to ensure high quality of products, services, or processes.

Small Quantity

A lesser amount or volume of goods or materials, often contrasting with bulk or large-scale purchases.

Core Competency

A defining strength or advantage of a company, crucial to its success and difficult for competitors to replicate.