When 25,000 Units Are Produced, Fixed Costs Are $21

question 91

Multiple Choice

When 25,000 units are produced, fixed costs are $21.00 per unit. Therefore, when 20,000 units are produced, fixed costs will ________.

• A) increase to $26.25 per unit
• B) remain at $21.00 per unit
• C) decrease to $16.80 per unit
• D) total $420,000

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