Scott Equipment produces high-quality soccer balls. If the fixed cost per ball is $ 3 when the company produces 15000 balls, what is the fixed cost per ball when it produces 22500 balls? Assume that both volumes are in the same relevant range.

Unitary fixed cost = $2

Explanation:

Giving the following information:

The fixed cost per ball is $ 3 when the company produces 15000 balls.

We need to find the unitary fixed cost at a production of 22,500 units. First, we need to determine the total fixed cost expense:

Total fixed cost = unitary cost * number of units

Total fixed cost = 3*15,000 = 45,000

For 22,500

Unitary fixed cost = 45,000/22,500 = $2