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15 February, 09:51

Fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced. What is the total fixed cost when nothing is produced? a.$12 b.$130,000 c.$200,000 d.$175,000

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  1. 15 February, 09:54
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    The correct answer is D.

    Explanation:

    Giving the following information:

    The fixed cost per unit is $7 when 25,000 units are produced and $5 when 35,000 units are produced.

    Total fixed costs = 7*25,000 = 175,000

    Total fixed costs = 5*35,000 = 175,000

    Fixed costs = $175,000
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