At Raines Company, Total Fixed and Variable Costs Are $480,000

question 329

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.
-If Raines Company reduces production to 180,000 units then the fixed cost per unit will be

• A) $1.18.
• B) $1.15.
• C) $1.00.
• D) $1.11.

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