When 10 000 units are produced,variable costs are $6 per unit.Therefore,when 20 000 units are produced:
A)variable unit costs will increase to $12 per unit.
B)variable unit costs will decrease to $3 per unit.
C)variable costs will total $120 000.
D)variable costs will total $60 000.

Question

Quizplus · Accepted Answer

Variable costs change with the level of production, but the cost per unit remains constant. Therefore, if 10,000 units have a variable cost of $6 each, producing 20,000 units would double the total variable cost to $120,000 ($6 per unit x 20,000 units), not change the cost per unit.

When 10 000 Units Are Produced,variable Costs Are $6 Per