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In a Particular Process, the Fixed Costs Are Calculated at $40,000

Question 12

Multiple Choice

In a particular process, the fixed costs are calculated at $40,000 and the variable costs at $1.50 per unit.
If 10,000 units are to be produced, what is the average cost per unit?


A) $1.50
B) $2.00
C) $4.00
D) $5.50
E) none of the above

Correct Answer:

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