When Greenway, Inc. sells 43,900 units, its total fixed cost is $83,410. What is its total fixed cost when it sells 50,400 units? Multiple Choice $71,060 $120,460 $83,410 $95,760
Answer: $83,410
.
A cost that does not vary with the level of activity (output or production) is called a fixed cost.
In other words, the total fixed cost does not change as the level of activity changes.
So,
Fixed costs to produce 43,900 units = Fixed costs to produce 50,400 units = $83,410
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