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Problem 1: Which of the following is an example of a fixed cost?
Select one:
a. Surgical supplies used in a hospital's operating room
b. Paper used in the manufacturing of textbooks
c. Property taxes paid to the government
d. Gasoline consumed by salespersons' cars
Problem 2: Total costs are KD 180,000 when 10,000 units are produced; of this amount, variable costs are KD 64,000. What are the total costs when 13,000 units are produced?
a. KD 214,800
b. KD 204,000
c. KD 199,200
d. KD 234,000
Problem 3: Which of the following would not affect the break-even point?
a. Selling price per unit
b. Number of units sold
c. Variable expense per unit
d. Total fixed expenses
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