A Company Has Fixed Costs of $75,000 Per Month

question 26

Multiple Choice

A company has fixed costs of $75,000 per month.If sales double from 5,000 to 10,000
Units during the month,fixed costs will

• A)remain the same.
• B)double.
• C)be cut in half.
• D)increase slightly.

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Definitions:

Cotton Fields

Vast agricultural lands in the southern United States where cotton was grown as a primary crop, heavily reliant on slave labor before the Civil War.

Western Alabama

A region in the state of Alabama, characterized by its historical, cultural, and economic distinctiveness from other parts of the state.

Geographic Area

A specific portion of the earth's surface distinguished by natural and/or human-made boundaries.