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.

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Definitions:

Constant

A value or parameter that does not change within the context of a specific mathematical equation or scientific experiment.

Downward Sloping

Describes a line on a graph that represents a decrease in one variable in response to an increase in another, commonly used in economics to depict demand curves.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price in a given period.

Price

The payment magnitude expected, called for, or compensated in exchange for something.