What Would Be the Average Fixed Cost Per Unit at an Activity

question 299

Multiple Choice

What would be the average fixed cost per unit at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

• A) $6.24
• B) $6.00
• C) $14.94
• D) $32.59

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Definitions:

Industry

A classification that refers to groups of companies that are related based on their primary business activities.

Bargaining Power

The relative ability of parties in a negotiation to exert influence over each other, often determining the terms and conditions of agreements.

Availability

This term generally refers to the readiness or accessibility of an asset, resource, or product for use or sale.

Prices

The amount of money required to purchase a good, service, or asset.