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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 $86,240.
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.
$32.27
$15.68
$65.74
$15.40
