Total Fixed Costs for Threads Company Are $80,000

question 155

Multiple Choice

Total fixed costs for Threads Company are $80,000. Total costs, both fixed and variable, are $170,000 if 125,000 units are produced. The fixed cost per unit at 100,000 units would be

• A) $1.70/unit.
• B) $0.90/unit.
• C) $2.50/unit.
• D) $0.80/unit.

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Definitions:

Expected Production

The anticipated quantity of products or services to be produced in a specific period.

Labour Standards

The criteria or guidelines that define acceptable working conditions, including hours of work, safety, wages, and benefits.

Predetermined Time Standards

Time values assigned to specific tasks based on prior analysis, often used in manufacturing and work measurement to establish time expectations.

Government Laws

Regulations and legal requirements established by local, state, and federal governments that businesses must comply with.