When 25,000 units are produced, fixed costs are $21.00 per unit. therefore, when 20,000 units are produced, fixed costs will ________?
Business · High School · Tue Nov 03 2020
Answered on
To determine the fixed costs when producing 20,000 units, you can use the given information.
Let's first find the total fixed costs when 25,000 units are produced:
Total fixed costs = Fixed costs per unit × Number of units produced
Total fixed costs = $21.00 per unit × 25,000 units
Total fixed costs = $525,000
Now, to find the fixed costs when producing 20,000 units:
Fixed costs per unit = Total fixed costs / Number of units produced
Fixed costs per unit = $525,000 / 25,000 units
Fixed costs per unit = $21.00 per unit
Therefore, when producing 20,000 units, the fixed costs will remain the same at $21.00 per unit based on the given information.