Winslow, Inc, a tennis equipment manufacturer, has variable costs of $0
60 per unit of product. In August, the volume of production was 27,000 units, and units sold were 21,800. The total production costs incurred were $30,600. What are the fixed costs per month?
A) $14,400
B) $17,520
C) $3,600
D) $16,200
A .A)
Total production costs incurred in Aug. $30,600
Variable cost per unit $0.60
Number of units produced in Aug. 27,000
Total variable costs incurred in Aug.
($27,000 x 0.60 ) $16,200
Total fixed costs ($30,600 - $16,200 ) $14,400
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