Ace Card Company Has Variable Costs of $0

question 155

Multiple Choice

Ace Card Company has variable costs of $0.40 per unit of product. The remainder of its production costs are fixed. In May, the volume was 12,000 units and the total production costs were $6,900. How much are the fixed costs?

• A) $2,100
• B) $2,200
• C) $1,950
• D) $2,025

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Definitions:

Solve For X

"Solve for X" is an instruction in mathematics to find the value of the variable X that satisfies a given equation.

Accurate To Cent

A measurement precise to the nearest hundredth of a currency unit.

Solve For X

A mathematical expression used to find the value of an unknown variable.

Five-Figure Accuracy

Five-figure accuracy refers to precision up to five significant digits in a numerical measurement or calculation.