The fixed cost is divided by unit sales and then added into variable cost for calculation is ___________?
Correct answer: B. unit cost
- A. markup demand
- B. unit cost
- C. markup cost
- D. markup price
Explanation
Dividing total fixed cost by unit sales converts fixed cost into fixed cost per unit; adding variable cost per unit gives unit cost. This is the basis for calculating the cost of producing or selling one unit.
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