Perry Company's break-even point is 20,000 units. Its product sells for $25 and has a $10 variable cost per unit. What is the company's total fixed cost ?amount

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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MERSİN ÜNIVERSIT..
$250,000
$136,364 O
Perry Company's break-even point is 20,000 units. Its product sells for $25
and has a $10 variable cost per unit. What is the company's total fixed cost
?amount
$180,000 O
Fixed costs cannot be computed with the information provided. O
$120,000 O
$200,000 O
$300,000
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Mersin Universitesi Ja-y t
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HEWLE TT-PAC KARD
Transcribed Image Text:MERSİN ÜNIVERSIT.. $250,000 $136,364 O Perry Company's break-even point is 20,000 units. Its product sells for $25 and has a $10 variable cost per unit. What is the company's total fixed cost ?amount $180,000 O Fixed costs cannot be computed with the information provided. O $120,000 O $200,000 O $300,000 إرسال Google A -, Mersin Universitesi Ja-y t Coogle hp HEWLE TT-PAC KARD
yer EweLER
D MERSİN ÜNİVERSİT.
A company has monthly fixed costs of $36,000. The variable costs are $2.50
per unit. If the sales price of a unit is $12.00 and we produce and sell 8,000
:units, the company's average cost per unit will be
$ 7.00 per unit. O
$ 2.50 per unit. O
$ 9.50 per unit. O
$ 5.60 per unit. O
$ 8.25 per unit. O
Select the incorrect statement regarding the relationship between cost
behavior and revenue
A pure fixed cost structure offers higher potential rewards. O
In a pure variable cost structure, operating leverage is 1 (one).
pure variable cost structure offers more security if volume expectations are not
Ehieved.
hp
Transcribed Image Text:yer EweLER D MERSİN ÜNİVERSİT. A company has monthly fixed costs of $36,000. The variable costs are $2.50 per unit. If the sales price of a unit is $12.00 and we produce and sell 8,000 :units, the company's average cost per unit will be $ 7.00 per unit. O $ 2.50 per unit. O $ 9.50 per unit. O $ 5.60 per unit. O $ 8.25 per unit. O Select the incorrect statement regarding the relationship between cost behavior and revenue A pure fixed cost structure offers higher potential rewards. O In a pure variable cost structure, operating leverage is 1 (one). pure variable cost structure offers more security if volume expectations are not Ehieved. hp
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