At Raines Company,total Fixed and Variable Costs Are $480,000 at a Production

question 265

Multiple Choice

At Raines Company,total fixed and variable costs are $480,000 at a production level of 140,000 units.The company has total fixed costs of $200,000.The fixed cost per unit at a production level of 200,000 units is:

• A)$3.43.
• B)$2.40.
• C)$1.00.
• D)$1.43.

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Definitions:

Industry Output

The total product or service produced by companies within a specific sector or industry.

Noncooperative Behavior

Actions in a competitive environment where entities act independently without collaboration, potentially leading to less optimal outcomes.

Marginal Costs

The increase in aggregate expenses due to the production of an additional unit of a good or service.

Industry Output

The total production or supply of goods and services produced by a specific industry within a certain period.