The following data pertain to costs at Summit Company: The variable cost per unit is
A)$ 3.75.
B)$15.00.
C)$18.75.
D)$11.25.

Name: The following data pertain to costs at Summit Company: The variable cost per unit is A)$ 3.75. B)$15.00. C)$18.75. D)$11.25.
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Question

The following data pertain to costs at Summit Company:  The variable cost per unit is
A)$ 3.75. 
B)$15.00. 
C)$18.75. 
D)$11.25.

Quizplus · Accepted Answer

The variable cost per unit can be calculated by dividing the total variable costs ($450,000) by the total number of units produced (120,000). 
$450,000 ÷ 120,000 = $3.75 per unit. Therefore, the best choice is A.

The Following Data Pertain to Costs at Summit Company