Fixed cost per unit is $12 when 15,000 units are produced and $8 when 22,500 units are produced. What is the total fixed cost when nothing is produced? a) $120,000 b) $180,000 c) $150,000 d) $160,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Fixed cost per unit is $12 when 15,000 units are produced and
$8 when 22,500 units are produced. What is the total fixed
cost when nothing is produced?
a) $120,000
b) $180,000
c) $150,000
d) $160,000
Transcribed Image Text:Fixed cost per unit is $12 when 15,000 units are produced and $8 when 22,500 units are produced. What is the total fixed cost when nothing is produced? a) $120,000 b) $180,000 c) $150,000 d) $160,000
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