Total Fixed Costs for Randolph Manufacturing Are $752,450

question 193

Multiple Choice

Total fixed costs for Randolph Manufacturing are $752,450. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The fixed cost per unit at 186,250 units would be closest to

• A)$1.31/unit.
• B)$5.31/unit.
• C)$4.00/unit.
• D)$5.03/unit.

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Definitions:

Break-Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for the business.

Photo-Prints

Physical prints of photographs, typically produced from digital images or negatives.

Break-Even Point

The point at which total costs and total revenue are equal, and no profit or loss is generated.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profit.