Use the Information Below to Answer the Following Question(s)

question 116

Multiple Choice

Use the information below to answer the following question(s) .
Paris Plastics has monthly fixed costs of $90,000, while its variable costs are $4.00 per unit. The sales price per unit is $16.00 and Paris Plastics sold 12,000 units.
-Paris Plastics' average fixed costs per unit will be

• A) $11.50 per unit.
• B) $4.00 per unit.
• C) $7.50 per unit.
• D) $12.00 per unit.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, often derived from profits, on a per-share basis.

Return on Assets

A financial ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.

Net Income

The net earnings of a company following the deduction of all costs, such as taxes and operational expenses, from its overall income.

Total Assets

The sum of everything an organization owns, both current and noncurrent, that can be used to generate value.