Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 28

Cost Relationships Comptech hired Erwin & Associates to design a new computer-aided manufacturing facility that has the capacity to produce 250 computers per month. The variable costs for each computer are $150 and the fixed costs total $62,250 per month.

Required What is the average cost per unit if the facility normally expects to operate at 80 percent of capacity?