If union contracts raise wages above competitive levels, what might be one negative outcome?
1 answer:
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Answer:
e.$8,000 of fixed costs and $108,000 of variable costs.
Explanation:
Fixed costs don't change with a change in production volume, therefore, fixed costs remain $8,000.
The cost per unit to produce 15,000 units is:
Assuming a new production volume of 18,000 units, budgeted variable costs are:
The budgeted amounts are: e.$8,000 of fixed costs and $108,000 of variable costs.