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As before, the Khalid Company manufactures and sells Paso-the-Salsa, which is a bottled condiment used on a variety of foods. Each bottle is sold
As before, the Khalid Company manufactures and sells Paso-the-Salsa, which is a bottled condiment used on a variety of foods. Each bottle is sold for $6. The company recently had the following costs to produce and sell 12,000 units of its product during August: A. Rent of $5,000 on a billboard to help advertise the product B. Rent on factory and equipment of $8,000 C. Total payroll for hourly paid, factory workers $24,000 D. Tomatoes, onions, spices and bottles $18,000 E. Total payroll for salaried, administrative staff $6,000 Answer the questions below using the data above (along with the appropriate variable cost and fixed cost classifications from the previous Participation Exercise). Question 1 For future reference, what is the company's variable cost per unit (rounded to the nearest penny)? Question 2 For future reference, what are the company's total fixed costs? 3 pts 2 pts
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