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    Cost per Unit

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    At a sales volume of 30,000 units, Carne Company's total fixed costs are 40,000 and total variable costs are 52,500. The relevant range is 20,000 to 40,000 units.
    Reference: 2-8

    If Carne Company were to sell 40,000 units, the total expected cost per unit would be:

    (a) 3
    (b) 2.75
    (c) 2.83
    (d) 1.75

    © BrainMass Inc. brainmass.com June 3, 2020, 6:33 pm ad1c9bdddf
    https://brainmass.com/business/financial-accounting-bookkeeping/cost-per-unit-problem-65261

    Solution Preview

    In the relevant range the fixed costs would not change. The variable ...

    Solution Summary

    The solution explains the calculation of cost per unit given the total volume of sales.

    $2.19

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