Based on the following cost data,items labeled (a)and (b)in the table below are which of the following amounts,respectively? $\begin{array}{lrr}
\text { Number of units: } &1,500&3,000\
\text { Total cost: } &\
\text { Variable} &\$7,500&\$15,00\
\text { Fixed} &\$6,000&\$6,000\
\
\text { Cost per unit:} &\
\text { Variable } &\$5&(a)\
\text { Fixed }&\$4&(b)
\end{array}$

A) (a) = $3.00; (b) = $3.00
B) (a) = $5.00; (b) = $4.00
C) (a) = $2.50; (b) = $2.00
D) (a) = $5.00; (b) = $2.00

Question

Based on the following cost data,items labeled (a)and (b)in the table below are which of the following amounts,respectively? $\begin{array}{lrr}
  \text { Number of units: } &1,500&3,000\
 \text { Total cost: } &\
 \text {  Variable} &\$7,500&\$15,00\
 \text {  Fixed} &\$6,000&\$6,000\
\
 \text {  Cost per unit:} &\
 \text { Variable } &\$5&(a)\
 \text { Fixed }&\$4&(b)
\end{array}$

A) (a) = $3.00; (b) = $3.00
B) (a) = $5.00; (b) = $4.00
C) (a) = $2.50; (b) = $2.00
D) (a) = $5.00; (b) = $2.00

Quizplus · Accepted Answer

Variable cost per unit remains constant as production increases, so (a) is $5.00. Fixed cost per unit decreases as production increases, so for 3,000 units, the fixed cost per unit is $6,000 / 3,000 = $2.00, making (b) $2.00.

Based on the Following Cost Data,items Labeled (A)and (B)in the Table