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4 votes
Based on the information provided in the two-month income statements, what is the amount of fixed overhead cost per unit?

a. $0.50
b. $1.00
c. $1.50
d. $2.00

asked
User Zbateson
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8.3k points

1 Answer

5 votes

The question does not provide enough information to determine the amount of fixed overhead cost per unit.

The average fixed cost is obtained by dividing the fixed cost by the quantity of output produced. In this case, the fixed cost is $1,000. So, if we divide $1,000 by the quantity of output, we will get the average fixed cost. However, the two-month income statements are not mentioned in the question, so it is not possible to determine the fixed overhead cost per unit.

answered
User Helmut Zechmann
by
9.0k points

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