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M5-8 (Algo) Predicting Cost Behavior [LO 5-2,5-3] Randy Company produces tennis rackets. If the fixed cost per racket is $15

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Answer #1

Total fixed costs for 48400 rackets=48400*15

=$726000

Hence total fixed costs for 33000 rackets=$726000

Hence fixed cost per racket would be=726000/33000

which is equal to

=$22

NOTE:Total fixed costs and variable cost per unit do not change with change in units

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