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

Costs and cost behaviour — practice question

A business produces one product only. The information below is given. Output 600 units, total cost $4200. Output 800 units, total cost $5200. What is the fixed cost per unit?

  • AFor 600 units: $2.00; for 800 units: $1.50
  • BFor 600 units: $2.00; for 800 units: $2.00
  • CFor 600 units: $5.00; for 800 units: $5.00
  • DFor 600 units: $7.00; for 800 units: $6.50

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