If Total Costs Are $30,000 at an Output of 2,000

question 20

Multiple Choice

If total costs are $30,000 at an output of 2,000 units and $45,000 at an output of 3,500 units, and variable costs are $10 per unit, total fixed costs are:

• A)$15,000
• B)$10,000
• C)$20,000
• D)$25,000

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Definitions:

Unemployment Taxes

Unemployment taxes are taxes paid by employers to fund the unemployment insurance system, providing benefits to workers who have lost their jobs.

FICA-OASDI

Federal Insurance Contributions Act - Old-Age, Survivors, and Disability Insurance; a payroll tax that funds Social Security and Medicare in the United States.

Workers' Compensation

Insurance offering medical benefits and wage replacement to employees who become injured while on the job.

Clerical Support

Administrative assistance typically involving office or paper work.