If the company's volume increases to 5,000 units,the total cost per unit will be:
A) $18.00.
B) $20.00.
C) $20.50.
D) $22.50.

Question

Quizplus · Accepted Answer

Variable cost per unit = Total variable cost ÷ Number of units
Variable cost per unit = $50,000 ÷ 4,000 units = $12.50 per unit
Total cost per unit = Fixed cost per unit + Variable cost per unit
Total cost per unit = ($40,000 ÷ 5,000 units)+ $12.50 per unit = $20.50 per unit

If the Company's Volume Increases to 5,000 Units,the Total Cost