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    Fixed and Variable Costing

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    At an activity level of 20,000 units produced, fixed costs total 430,000 and variable costs total $67,000. Assuming that this activity is within the relevant range, if 25,000 units are produced, then:

    a total fixed costs are expected to be $37,500.
    b variable cost per unit is expected to equal $2.68
    c fixed cost per unit is expected to equal $1.20
    d total cost per unit is expected to equal 43.88

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    https://brainmass.com/business/management-accounting/fixed-variable-costing-39086

    Solution Preview

    Please refer to file response attached, which is also presented below. I hope this helps and take care.

    RESPONSE:

    Best answer: (b) variable cost per unit is expected to equal ...

    Solution Summary

    This solution provides the best answer for one multiple choice question e.g., fixed vs. variable costing, and explains why it is the best answer, including reference.

    $2.19

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