Randy Company produces tennis rackets. If the fixed cost per racket is $15 when 64,400 rackets are produced, what is the fixed cost per racket when 34,500 rackets are produced?
Answer- The fixed cost per racket when 34500 rackets are produced = $28 per rackets.
Explanation- Total fixed costs = $15 per racket*64400 rackets
= $966000
Fixed cost per racket on 34500 rackets = $966000/34500 rackets
= $28 per rackets
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