Ace Card Company Has Variable Costs of $0

question 155

Multiple Choice

Ace Card Company has variable costs of $0.40 per unit of product. The remainder of its production costs are fixed. In May, the volume was 12,000 units and the total production costs were $6,900. How much are the fixed costs?

• A) $2,100
• B) $2,200
• C) $1,950
• D) $2,025

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