Hadrana Corporation Reports That at an Activity Level of 5,500

question 101

Multiple Choice

Hadrana Corporation reports that at an activity level of 5,500 units, its total variable cost is $275,330 and its total fixed cost is $86,240. What would be the average fixed cost per unit at an activity level of 5,600 units? Assume that this level of activity is within the relevant range.

• A)$32.27
• B)$15.68
• C)$65.74
• D)$15.40

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