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A Professional Services Business Has Fixed Costs of €150,000 and Variable

Question 17

Multiple Choice

A professional services business has fixed costs of €150,000 and variable costs of €15 per hour. The difference between average costs at a level of activity of 12,000 and 15,000 hours is:


A) A reduction of €2.50
B) An increase of €2.50
C) An increase of €15
D) A reduction of €25

Correct Answer:

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