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London Plastics Sells a Product for $15

Question 128

Multiple Choice

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the company's average fixed costs per unit will be


A) $4.00 per unit.
B) $7.00 per unit.
C) $10.00 per unit.
D) $11.00 per unit.

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