Nexon Inc.'s highest point of the total cost was $100,000 in August. Their point of lowest cost was $75,000 in February. The company makes a single product. Production volumes in August and February were 20,000 and 10,000 units, respectively. What is the fixed cost per month?

Nexon Inc.'s highest point of the total cost was $100,000 in August. Their point of lowest cost was $75,000 in February. The company makes a single product. Production volumes in August and February were 20,000 and 10,000 units, respectively. What is the fixed cost per month?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....

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Nexon Inc.'s highest point of the total cost was $100,000 in August. Their
point of lowest cost was $75,000 in February. The company makes a single
product. Production volumes in August and February were 20,000 and 10,000
units, respectively.
What is the fixed cost per month?

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