Fixed Costs—The Relevant Range Sabrina Company manufactures large leisure boats. The following schedule shows total fixed costs at various levels of boat production:

1. What is the fixed cost per unit when 75 boats are produced?
2. What is the fixed cost per unit when 300 boats are produced?
3. What is the fixed cost per unit when 750 boats are produced?
4. Plot total fixed costs on a graph similar to that shown in Exhibit 2.

Transcribed Image Text:

Units Produced 0-100 101-400 401-900 Total Fixed Costs $150,000 250,000 400,000