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
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Solution Summary
The solution explains the calculation of cost per unit given the total volume of sales.
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In the relevant range the fixed costs would not change. The variable ...
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