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A Company Has Fixed Costs of €185,000 and Variable Costs

Question 5

Multiple Choice

A company has fixed costs of €185,000 and variable costs of €10 per unit. What are the costs per unit if: i) 25,000 units are produced and ii) 65,000 units are produced?


A) i) €17.40 and ii) €12.85
B) i) €19.56 and ii) €15.32
C) i) €25.50 and ii) €18. 37
D) i) €28.42 and ii) €22.96

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