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At a Sales Volume of 40,000 Units, Lonnie Company's Total

Question 4

Multiple Choice

At a sales volume of 40,000 units, Lonnie Company's total fixed costs are £40,000 and total variable costs are £60,000.
The relevant range is 30,000 to 50,000 units.
-If Lonnie were to sell 50,000 units, the total expected cost per unit would be:


A) £2.20.
B) £2.30.
C) £2.50.
D) £2.00.

Correct Answer:

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