Lo 2.2total costs for abc distributing are $250,000 when the activity level is 10,000 units. if variable costs are $5 per unit, what are their fixed costs?

$240,000
$200,000
$260,000
their fixed costs cannot be determined from the information presented.

$200,000

Explanation:

The computation is shown below:

Total cost = Fixed cost + variable cost

where,

Total cost = $250,000

And, the variable cost is

= Activity level × variable cost per unit

= 10,000 units × $5

= $50,000

So, the fixed cost would be

$250,000 = Fixed cost + $50,000

The fixed cost is

= $250,000 - $50,000

= $200,000

The total cost is a combination of the variable cost and the fixed cost

answer; dividing net income by 1- t ;

answer$225.00;