If Fixed Costs Are $40,000 and Total Costs Are $200,000

question 77

Multiple Choice

If fixed costs are $40,000 and total costs are $200,000 at an activity level of 8,000 units, variable costs are approximately:

• A) $5 per unit
• B) $20 per unit
• C) $25 per unit
• D) $40 per unit

Understand the essential need for environmental and industry analysis in business planning.

Acknowledge the significance of addressing potential pitfalls and problems in a business plan.

Understand the importance and role of service policies in sales and distribution decision-making.

Comprehend the make-or-buy decision process and its relevance in a manufacturing business.