If Total Costs Are $90,000 at an Output of 12,000

question 49

Multiple Choice

If total costs are $90,000 at an output of 12,000 units and $105,000 at 15,000 units, fixed costs are:

• A)$15,000.
• B)$10,000.
• C)$5,000.
• D)$20,000.

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Definitions:

Transport Buyer

An individual or entity responsible for purchasing transportation services or solutions.

Cost Per Hundredweight (Cwt)

A pricing measure used in various sectors, indicating the cost of 100 pounds of a product.

Logistics Costs

Expenses associated with managing the flow of goods from the point of origin to the point of consumption, including transportation, warehousing, and handling fees.

Inventory Carrying Costs

The total costs associated with holding and storing unsold goods or materials, including expenses such as warehousing, insurance, and spoilage.