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Questions -
A company sells its product for $12 per unit. Variable costs per unit are $5. The company's total fixed costs are $98,000. The break even point in units is:
A. 19,000
B. 14,000
C. 8,167
D. 7,000
Which cost is most likely to be considered a fixed cost?
A. Sales commissions
B. Property taxes
C. Direct material
D. Direct labor
Classification for production costs are:
A. Taxes, Selling and Administration costs
B. Direct materials, Direct Labor, and Selling & Administration costs
C. Direct Labor, Overhead and Conversion costs
D. Direct Materials, Direct Labor and Overhead costs
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