Assuming that cost behavior did not change over the two-year period,what is the amount of the company's variable cost of goods sold per unit?
A) $12.00 per unit
B) $16.00 per unit
C) 22.00 per unit
D) none of these

Question

Quizplus · Accepted Answer

Variable cost per unit = Change in costs ÷ Change in activity
Variable cost per unit = ($68,000 - $60,000)÷ (3,500 units - 3,000 units)= $16.00 per unit

Assuming That Cost Behavior Did Not Change Over the Two-Year