The relevant range for Maxco Industries is 10,000 to 16,000 units of product. The variable costs per unit are $6 when a company produces 12,000 units of product. What are the variable costs per unit when 14,000 units are produced?
A) $4.50.
B) $5.00.
C) $5.50.
D) $6.00.
E) None of the answers is correct.

Question

Quizplus · Accepted Answer

Variable costs per unit remain constant regardless of the number of units produced, as long as the production level is within the relevant range.

The Relevant Range for Maxco Industries Is 10,000 to 16,000