At a Production Level of 5,600 Units a Project Has

question 117

Multiple Choice

At a production level of 5,600 units a project has total costs of $89,000. The variable cost per unit is $11.20. What is the amount of the total fixed costs if the production level is increased to 6,100
Units without increasing the total fixed assets?

• A) $24,126
• B) $26,280
• C) $27,090
• D) $27,820
• E) $28,626

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Definitions:

Aggregate Demand

The collective appetite for goods and services in an economy, valued at a certain price point during a precise time interval.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in a country in a given time period.

Price Level

A measure that reflects the average of current prices across the entire spectrum of goods and services produced in the economy.

Aggregate Supply Curve

Represents the total quantity of goods and services that producers in an economy are willing and able to supply at a given overall price level in a given period.