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

Costs and cost behaviour — practice question

A firm leases machinery to operate in its factory. One machine costs $12800 to hire. Each machine can make 6000 units. The firm gave the information below. units produced: 9000, total costs excluding machinery rental cost: $5100 units produced: 1200, total costs excluding machinery rental cost: $6600 What is the total fixed cost for producing 1000 units?

  • A$8000
  • B$8400
  • C$15000
  • D$16200

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI