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Calculate the value for fixed cost

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Reference no: EM133121486

Question - Jack's Bakery has a total cost of production for two levels of activity is as follows:

Production Cost

Activity level

Level 1

$6,750

3,000

Level 2

$9,250

5,000

The variable production cost per unit and the total fixed production cost both remain constant in the range of activity shown. Calculate the value for fixed cost.

a. $3,500

b. $2,000

c. $3,000

d. $2,500

Reference no: EM133121486

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