Dapper Hat Makers Is in the Business of Designing and Producing

question 104

Multiple Choice

Dapper Hat Makers is in the business of designing and producing specialty hats. The material used for derbies costs $4.50 per unit, and Dapper pays each of its two full-time employees $250 per week. If the employees make 50 derbies in one week, what is the fixed cost per derby? (Round to two decimal places where necessary.)

• A) $4.50
• B) $5.00
• C) $10.00
• D) $14.50

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