If the fixed cost is $45000, units sold are 60000 and the variable cost is $25 then the unit cost will be __________?
Correct answer: C. $25.75
- A. $33.75
- B. $30.75
- C. $25.75
- D. $28.75
Explanation
Fixed cost per unit is $45,000 ÷ 60,000 = $0.75; adding the $25 variable cost gives a unit cost of $25.75. The fixed cost must first be spread across the units sold.
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