If the fixed cost is $200000, unit sales are 30000 and the variable cost is $8 then the unit cost is?
Correct answer: A. $14.67
- A. $14.67
- B. $18.67
- C. $20.67
- D. $25.67
Explanation
Unit fixed cost is $200,000 ÷ 30,000 = $6.67; adding the $8 variable cost gives a total unit cost of about $14.67. The other figures result from adding the costs incorrectly.
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