Variable Costs Depend on the Number of Units Produced

question 42

Multiple Choice

Variable costs depend on the number of units produced.Fixed costs are the same regardless of how many units are produced.A company has fixed monthly costs of $17,000 and variable monthly costs of $6.00 per unit.The company has $95,000 available each month to cover costs.Find the greatest number of units the company can produce each month.

• A) 13,000 units per month
• B) 12,991 units per month
• C) 12,987 units per month
• D) 12,998 units per month
• E) 13,014 units per month

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