Ace Card Company Has Variable Costs of $0

Multiple Choice

Ace Card Company has variable costs of $0.40 per unit of product. The remainder of its production costs are fixed. In May, the volume was 12,000 units and the total production costs were $6,900. How much are the fixed costs?

A) $2,100
B) $2,200
C) $1,950
D) $2,025