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27 January, 03:39

Scott Equipment produces high-quality soccer balls. If the fixed cost per ball is $ 3 when the company produces 15000 balls, what is the fixed cost per ball when it produces 22500 balls? Assume that both volumes are in the same relevant range.

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  1. 27 January, 04:17
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    Unitary fixed cost = $2

    Explanation:

    Giving the following information:

    The fixed cost per ball is $ 3 when the company produces 15000 balls.

    We need to find the unitary fixed cost at a production of 22,500 units. First, we need to determine the total fixed cost expense:

    Total fixed cost = unitary cost * number of units

    Total fixed cost = 3*15,000 = 45,000

    For 22,500

    Unitary fixed cost = 45,000/22,500 = $2
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