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SSC Financial and Cost Accounting P-1 QUESTION #6149
Question 1

Total cost data: 600 units = $4,200; 800 units = $5,200. What is the fixed cost per unit at each level?

OptionFor 600 units ($)For 800 units ($)
A2.001.50
B2.002.00
C5.005.00
D6.507.00
  • Option A✔️
  • Option B
  • Option C
  • Option D
Correct Answer Explanation

Option A is correct.

Variable cost per unit = ($5,200 − $4,200) ÷ 200 = $5

Fixed costs = $4,200 − (600 × $5) = $1,200

At 600 units: $1,200 ÷ 600 = $2.00; At 800 units: $1,200 ÷ 800 = $1.50