A Company Has Monthly Fixed Costs of $115,500

question 287

Multiple Choice

A company has monthly fixed costs of $115,500. The variable costs are $5.00 per unit. If the sales price of a unit is $15.00 and we sell 7700 units, the company's average fixed costs per unit will be

• A)$10.00 per unit.
• B)$5.00 per unit.
• C)$20.00 per unit.
• D)$15.00 per unit.

---

Definitions:

Job Cost Sheet

A document that records and tracks the costs associated with a specific job or project.

Direct Labor Costs

The wages and other benefits paid to workers who are directly involved in the production of goods or services.

Marketing Department

The marketing department is responsible for creating, communicating, delivering, and exchanging offerings that have value for customers and clients.

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet complete, representing a component of a manufacturer's inventory.