Ask Question
10 February, 11:48

Hadrana corporation reports that at an activity level of 5,500 units, its total variable cost is $275,330 and its total fixed cost is $86,240. what would be the average fixed cost per unit at an activity level of 5,600 units? assume that this level of activity is within the relevant range.

+1
Answers (1)
  1. 10 February, 12:51
    0
    Calculation of average fixed cost per unit at an activity level of 5,600 units:

    The average fixed cost per unit can be calculated using the following formula:

    Average Fixed cost Per unit = Total Fixed Cost / Number of Units

    Total Fixed Cost at the level of 5,600 units is given $86,240

    Hence, Average Fixed cost Per unit = 86240/5600 = $15.40

    So, the average fixed cost per unit at an activity level of 5,600 units is $15.40
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Hadrana corporation reports that at an activity level of 5,500 units, its total variable cost is $275,330 and its total fixed cost is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers