Pedro Company Has Total Fixed Costs of $480,000

question 52

Multiple Choice

Pedro Company has total fixed costs of $480,000.Total fixed and variable costs are $600,000 at a production level of 125,000 units.The fixed cost per unit at a production level of 300,000 units is:

• A)$4.00.
• B)$3.20.
• C)$2.00.
• D)$1.60.

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Definitions:

Expected Monetary Value

The predicted average amount of money gained or lost from an investment or decision, calculated by considering all possible outcomes and their probabilities.

Gross Profits

Total revenue of a company minus the cost of goods sold.

Payoff Table

A tabular representation of the outcomes (payoffs) of different decisions under various states of nature.

Advertising Budget

The amount of money allocated towards promoting a product, service, or brand during a set period.