A company has monthly fixed costs of $135,000. The variable costs are $5 per unit. If...

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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 companys average fixed costs per unit will be O A. $23 per unit. OB. $7 per unit. ° C. $18 per unit. D. $5 per unit.

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Answer 1

Answer #1

C. $18 per unit.

Average fixed costs per unit = $135,000 / 7,500 = $18 per unit

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Answer 2

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