Homework Answers
Solution
Fixed manufacturing cost per unit at 10,000 production capacity = $ 4.00
Total Fixed manufacturing cost at 10,000 production capacity = $ 4.00*10,000= $40,000
Total fixed cost will remain same for all level of activities .
Thus total fixed manufacturing cost at production level of 10,000 will be same as at level of 8,000.
total fixed manufacturing cost at production level of 8,000 = $ 40,000
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