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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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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.

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


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

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