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