Pedro Company Has Total Fixed Costs of $480,000

question 193

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 fixed cost per unit at a production level of 300,000 units is

• A) $4.00.
• B) $3.20.
• C) $2.00.
• D) $1.60.

---

Definitions:

Management Rights

The legal and contractual rights that allow employers to manage, direct, and control their operations and workforce.

Withholding Labor

A tactic used by workers, such as in a strike, where they refuse to work in order to pressure employers to meet their demands.

Employer's Cost

The total expenses incurred by employers to compensate employees, including wages, benefits, taxes, and insurance.

Picket Line Misconduct

Unacceptable or illegal actions committed by individuals participating in a picket line, typically during a labor strike.