Question 28

A company has the following units produced and costs for two production outputs:

Output A: Total Cost = 75,000, Production = 4,500 units

Output B: Total Cost = 95,000, Production = 6,000 units

Calculate the Total fixed costs...

A 10,000

B 7,500

C 17,500

D 15,000

Question 29

XYZ PLC produces a product and then sells for 300 each. Total fixed cost is 480,000 per year. Each unit requires: 120 of materials, 60 of labour and production overhead of 40.

How many units must be sold to make a 60,000 profit?

A 6,750 units

B 6,000 units

C 3,375 units

D 5,250 units