One of Matthew Corporation's competitors has learned that Matthew has a total expense per unit of $1.50 at the 15,000 unit level of activity and total expense per unit of $1.45 at the 20,000 unit level of activity. Assume that the relevant range includes all of the activity levels mentioned in this problem.What would be the competitor's prediction of variable cost per unit for Matthew Corporation?
A) $1.30
B) $0.77
C) $1.50
D) $1.45

Question

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The Answer of One of Matthew Corporation's competitors has learned that Matthew has a total expense per unit of $1.50 at the 15,000 unit level of activity and total expense per unit of $1.45 at the 20,000 unit level of activity. Assume that the relevant range includes all of the activity levels mentioned in this problem.What would be the competitor's prediction of variable cost per unit for Matthew Corporation?
A) $1.30
B) $0.77
C) $1.50
D) $1.45

One of Matthew Corporation's Competitors Has Learned That Matthew Has