Wu Company Incurred $40,000 of Fixed Cost and $50,000 of Variable

question 110

Multiple Choice

Wu Company incurred $40,000 of fixed cost and $50,000 of variable cost when 4,000 units of product were made and sold. If the company's volume doubles,the total cost per unit will:

• A) stay the same.
• B) decrease.
• C) double as well.
• D) increase but will not double.

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Definitions:

Bonds Payable

Long-term liabilities representing amounts owed by a company from issuing bonds, which are required to be repaid at a future date.