Answer the following questions using the information below:
Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers:

-What is the per unit cost when producing 3,000 axles?
A)$58.33
B)$175.00
C)$85.00
D)$125.00

Question

Answer the following questions using the information below:
Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers:
 
-What is the per unit cost when producing 3,000 axles?
A)$58.33 
B)$175.00 
C)$85.00 
D)$125.00

Quizplus · Accepted Answer

The per unit cost is calculated by dividing the total cost by the number of units produced. If the total cost for producing 3,000 axles is $175,000, then the per unit cost is $175,000 / 3,000 = $58.33.

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