Question
Runaround Corporation sells running shoes and during January they ran production machines for 15,000 hours total and incurred $8,000 in maintenance costs. During July they
Runaround Corporation sells running shoes and during January they ran production machines for 15,000 hours total and incurred $8,000 in maintenance costs. During July they ran production machines for 10,000 hours total and incurred $6,200 in maintenance costs. Based on this data, what are the variable cost per unit and xed costs, respectively?
Select one:
a. Variable cost per unit=0.6 and Fixed cost=3,000
b. Variable cost per unit=0.6 and Fixed cost=2,600
c. Variable cost per unit=0.36 and Fixed cost=2,600
d. Variable cost per unit=0.36 and Fixed cost=3,000
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