Understanding Fixed Costs. Consider the following information: Number of Units Produced Fixed Cost 0-25,000 $35,000 25,001-50,000 65,000
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Understanding Fixed Costs. Consider the following information: Number of Units Produced Fixed Cost 0-25,000 $35,000 25,001-50,000 65,000 50,001-75,000 85,000 75,001-100,000 95,000
a. If 60,000 units are produced, what is the amount of fixed cost?
b. What is the relevant range for a fixed cost of $65,000?
c. Notice that the increases in fixed cost from range to range are not equal. How do you explain that?
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