Suppose that at a given volume,total costs and fixed costs are known.How are the variable costs per unit computed?
A)(total costs − fixed costs)/unit volume
B)(total costs/unit volume) − fixed costs
C)(total costs × unit volume) − (fixed costs/unit volume)
D)total costs − (fixed costs/unit volume)

Question

Quizplus · Accepted Answer

Variable costs per unit are computed by subtracting the fixed costs from the total costs and then dividing by the unit volume. This gives the cost that varies with the production volume on a per-unit basis.

Suppose That at a Given Volume,total Costs and Fixed Costs