Question

A company produces affordable, easy-to-use home computer systems and has fixed costs of $250. If they produce 100 units, what is the fixed cost per unit?

A. $2.50

B. $25.00

C. $250.00

D. $2,500.00

Answer 1

The fixed cost per unit is $2.50 when a company with fixed costs of $250 produces 100 units.

Step-by-step explanation:

If a company has fixed costs of $250 and produces 100 units, the fixed cost per unit is calculated by dividing the total fixed costs by the number of units produced. Therefore, the fixed cost per unit would be:

$250 fixed costs ÷ 100 units = $2.50 per unit.

The answer is A. $2.50