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Hadrana Corporation Reports That at an Activity Level of 5,500

Question 101

Multiple Choice

Hadrana Corporation reports that at an activity level of 5,500 units, its total variable cost is $275,330 and its total fixed cost is $86,240. What would be the average fixed cost per unit at an activity level of 5,600 units? Assume that this level of activity is within the relevant range.


A) $32.27
B) $15.68
C) $65.74
D) $15.40

Correct Answer:

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