The Maple Company has total fixed costs of $420,000. It also has $220,000 in total variable costs. These costs exist at a production level of 110,000 units. The variable cost per unit is
A)$2.00
B)$5.82
C)$3.82
D)$1.41

Question

Quizplus · Accepted Answer

The variable cost per unit is calculated by dividing the total variable costs by the number of units produced. So, $220,000 / 110,000 units = $2.00 per unit.

The Maple Company Has Total Fixed Costs of $420,000