A Company Has Monthly Fixed Costs of $112,500

question 149

Multiple Choice

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the company's total variable costs will be

• A)$112,500.
• B)$45,000.
• C)$142,500.
• D)$97,500.

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Definitions:

Annual Interest Rate

The percentage of interest that will be charged or earned on an investment or loan on an annual basis.

Prompt Payment Discount

A discount offered to customers for paying their invoices before a specified due date, used as an incentive for early payment.

Annual Rate

A periodic interest rate calculated over a year, often representing the cost of borrowing money or the earnings from an investment.

Vendor's Invoice

A document from a seller to a buyer that describes the products or services sold, their quantities, and the prices agreed upon.