At Dwight Incorporated, Total Fixed and Variable Costs Are $420,000

question 106

Multiple Choice

At Dwight Incorporated, total fixed and variable costs are $420,000 at a production level of 130,000 units. The company has total fixed costs of $225,000. The variable cost per unit at 200,000 units is

• A)$1.50
• B)$1.73
• C)$3.23
• D)$0.98

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Definitions:

Early Majority

A category of consumers that gather more information and spend more time deciding to make a purchase than innovators and early adopters.

Early Majority

A segment of consumers adopting new products or innovations just before the average person, following the innovators and early adopters.

Consumer Adoption Process

The stages consumers go through in accepting and becoming loyal users of a new product or service, including awareness, interest, evaluation, trial, and adoption.

Simulated Test Market

A market analysis tool where a new product is introduced to a sample of consumers in a controlled environment to forecast its success.