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

Costs and cost behaviour — practice question

A firm produces only one kind of product. The information below is given. Output and total cost: 600 units → $\$4200$ 800 units → $\$5200$ 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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