Tech Solutions Company has the following data: Fixed cost per unit is $6 when 30,000 units are produced and $4 when 40,000 units are produced. What is the total fixed cost when nothing is produced? a) $120,000 b) $100,000 c) $160,000 d) $200,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
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Total fixed cost when nothing is produced?

Tech Solutions Company has the following
data: Fixed cost per unit is $6 when 30,000
units are produced and $4 when 40,000
units are produced. What is the total fixed
cost when nothing is produced?
a) $120,000
b) $100,000
c) $160,000
d) $200,000
Transcribed Image Text:Tech Solutions Company has the following data: Fixed cost per unit is $6 when 30,000 units are produced and $4 when 40,000 units are produced. What is the total fixed cost when nothing is produced? a) $120,000 b) $100,000 c) $160,000 d) $200,000
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