The Clauson Company has total fixed costs of $400,000. They also have $120,000 in total variable costs. These costs exist at a production level of 80,000 units.
-The Clauson Company variable cost per unit is
A) $3.50.
B) $6.50.
C) $5.00.
D) $1.50.

Question

Quizplus · Accepted Answer

The variable cost per unit is calculated by dividing the total variable costs by the number of units produced: $120,000 / 80,000 units = $1.50 per unit.

The Clauson Company Has Total Fixed Costs of $400,000