1.
When Sherka, Inc. sells 40,000 units, its total fixed cost is $96,000. What is its total fixed cost
when it sells 45,000 units?
When Sherka, Inc. sells 40,000 units, its total fixed cost is $96,000. What is its total fixed cost
when it sells 45,000 units?
Solution
ANSWER:
Fixed Cost never Changes. It always same whether you produce any level of output.
Fixed cost neither decreases nor increases with change in output level..
Therefore, Answer should be (B) $ 96,000
Thanks