London Plastics Has Monthly Fixed Costs of $84,000,while Its Variable

question 170

Multiple Choice

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's average fixed costs per unit will be

• A)$6.00 per unit.
• B)$10.00 per unit.
• C)$4.00 per unit.
• D)$11.00 per unit.

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Definitions:

Managerial Levels

The tiers of management in an organization, typically including top-level executives, middle managers, and first-level managers, each with different roles and responsibilities.

Performance Pay Plans

Compensation strategies designed to directly link employees' pay with their performance or achievements in the workplace.

Discontinuation Rates

The rate at which products or services are discontinued or taken out of production or availability.

Mandatory Indirect Pay

Required compensation benefits provided by employers, such as social security contributions and unemployment insurance, that are not part of direct wages.