Pedro Company Has Total Fixed Costs of $480,000

question 38

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.
-At Pedro Company the variable cost per unit at 300,000 units is

• A) the same as at 150,000 units.
• B) greater than at 150,000 units.
• C) less than at 150,000 units.
• D) dependent upon fixed costs per unit.

---

Definitions:

Prohibition

A period in American history, specifically from 1920 to 1933, during which the manufacture, sale, and transportation of alcoholic beverages was legally prohibited.

Noble Experiment

A term that refers to the period of prohibition in the United States during the 1920s and early 1930s intended to reduce crime and corruption, improve health, and improve social morals.

Americans

Citizens of the United States of America or pertaining to the country itself.

Harlem Renaissance

An African American cultural movement in the 1920s and 1930s centered in Harlem, New York City, noted for its contributions to music, literature, and art.