If variable costs are $10 per unit,fixed costs are $300,000,and expected unit sales are 50,000,the unit cost is ________.
A) $16.00
B) $6.00
C) $20.00
D) $10.00
E) none of the above

Question

Quizplus · Accepted Answer

The unit cost is calculated by adding variable cost per unit to the fixed cost per unit. Fixed cost per unit is $300,000/50,000 = $6.00. Adding the variable cost of $10.00 gives a total unit cost of $16.00.

If Variable Costs Are $10 Per Unit,fixed Costs Are $300,000,and