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George Company Has a Relevant Range of 150,000 Units to 400,000

Question 175

Multiple Choice

George Company has a relevant range of 150,000 units to 400,000 units. The company has total fixed costs of $525,000. Total fixed and variable costs are $612,500 at a production level of 175,000 units. The variable cost per unit at 300,000 units is


A) the same as at 175,000 units.
B) greater than at 175,000 units.
C) less than at 175,000 units.
D) dependent upon fixed costs per unit.

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