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What the company fixed costs are

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Question 1: Royal Co. makes and sells only one product. The unit contribution margin is KD5 and the breakeven point in unit sales is KD 24,000. The company's fixed costs are:

Select one:

a. KD 4,800
b. KD 144,000
c. KD 24,000
d. KD 120,000

Question 2: Depreciation on a personal computer used in the marketing department of a manufacturing firm would be classified as:

Select one:

a. a product cost that is variable with respect to the company's output.
b. a period cost that is fixed with respect to the company's output.
c. a period cost that is variable with respect to the company's output.
d. a product cost that is fixed with respect to the company's output.

Reference no: EM132787140

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