A company has monthly fixed costs of $135,000. The variable costs are $5 per unit. If the sales price of a unit is $12 and we sell 7,500 units, the company's average fixed costs per unit will be OA. $23 per unit. B. $7 per unit. C. $18 per unit. D. $5 per unit.
A company has monthly fixed costs of $135,000. The variable costs are $5 per unit. If the sales price of a unit is $12 and we sell 7,500 units, the company's average fixed costs per unit will be OA. $23 per unit. B. $7 per unit. C. $18 per unit. D. $5 per unit.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 8EA: Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000...
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![A company has monthly fixed costs of $135,000. The variable costs are $5 per unit. If the sales price of a unit is $12 and we sell 7,500 units, the company's average fixed costs per unit will be
OA. $23 per unit.
OB. $7 per unit.
OC. $18 per unit.
OD. $5 per unit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7fa5cfd2-b9c5-4723-8d9b-ac940d93a037%2Fac9c1880-0e24-4f01-a15f-9c494e1e7103%2F0rpojw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company has monthly fixed costs of $135,000. The variable costs are $5 per unit. If the sales price of a unit is $12 and we sell 7,500 units, the company's average fixed costs per unit will be
OA. $23 per unit.
OB. $7 per unit.
OC. $18 per unit.
OD. $5 per unit.
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