The following data pertain to costs at Martin Company: $$\begin{array} { | l | c | }
\hline \text { Total fixed costs } & \$ 250,000 \
\hline \text { Total variable costs } & \$ 80,000 \
\hline \text { Production level } & 40,000 \text { units } \
\hline
\end{array}$$
- The variable cost per unit is:
A)$6.25.
B)$8.25.
C)$4.25.
D)$2.00.

Question

The following data pertain to costs at Martin Company: $$\begin{array} { | l | c | } 
\hline \text { Total fixed costs } & \$ 250,000 \
\hline \text { Total variable costs } & \$ 80,000 \
\hline \text { Production level } & 40,000 \text { units } \
\hline
\end{array}$$
- The variable cost per unit is:
A)$6.25.
B)$8.25.
C)$4.25.
D)$2.00.

Quizplus · Accepted Answer

The variable cost per unit is calculated by dividing the total variable costs by the production level: $80,000 / 40,000 = $2.00.

The Following Data Pertain to Costs at Martin Company - the Variable Cost Per Unit Is: A)$6

The Following Data Pertain to Costs at Martin Company - the Variable Cost Per Unit Is:
A)$6