Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A business has recorded the following total costs over the previous two months. Month 1: $8000$ units produced, total costs $\$31\,800$. Month 2: $10\,000$ units produced, total costs $\$36\,700$. What was the total fixed cost per month?

  • A$\$2440$
  • B$\$4900$
  • C$\$7340$
  • D$\$12\,200$

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