At Dwight Incorporated,total Fixed and Variable Costs Are $400,000 at a Production

question 127

Multiple Choice

At Dwight Incorporated,total fixed and variable costs are $400,000 at a production level of 100,000 units.The company has total fixed costs of $225,000.The variable cost per unit at 150,000 units is

• A)$1.75.
• B)$2.25.
• C)$4.00.
• D)$1.17.

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Definitions:

Investment Goods

Long-term assets purchased for the purpose of generating income, including machinery, buildings, and equipment.

Economic Growth

The uptick in the true economic value of goods and services made by an economy, accounting for inflation, as time progresses.

Technological Advance

The development and application of innovative techniques, tools, or methods that enhance efficiency, productivity, or quality.

Production Possibilities Frontier

An illustration representing the optimal production capabilities for a pair of items, using specific resources and conditions.