Bacho Corporation Reports That at an Activity Level of 5,400

question 21

Multiple Choice

Bacho Corporation reports that at an activity level of 5,400 units, its total variable cost is $416,934 and its total fixed cost is $142,560.
-What would be the average fixed cost per unit at an activity level of 5,500 units? Assume that this level of activity is within the relevant range.

• A) $26.40
• B) $103.61
• C) $25.92
• D) $51.98

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