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    Managerial Accounting Study Set 19
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    Exam 2: Identification and Estimating Costs and Benefits
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    Suppose Fixed Costs Are $500, Variable Cost Is $5 Per
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Suppose Fixed Costs Are $500, Variable Cost Is $5 Per

Question 12

Question 12

Short Answer

Suppose fixed costs are $500, variable cost is $5 per unit, and step costs are $50 for every 20 unit produced. What is the total cost of producing 25 units? a. $675
B) $688
C) $725
D) $800
E) $625

Correct Answer:

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