Assume the following information: $$\begin{array} { l c }
\text { Volume } & \text { Total Cost } \
80 \text { units } & £ 1,200 \
88 \text { units } & £ 1,300 \
96 \text { units } & £ 1,400
\end{array}$$ What is the variable cost per unit?
A)£15.00
B)£14.78
C)£13.75
D)£12.50

Question

Assume the following information: $$\begin{array} { l c } 
\text { Volume } & \text { Total Cost } \
80 \text { units } & £ 1,200 \
88 \text { units } & £ 1,300 \
96 \text { units } & £ 1,400
\end{array}$$ What is the variable cost per unit?
A)£15.00
B)£14.78
C)£13.75
D)£12.50

Quizplus · Accepted Answer

The variable cost per unit can be calculated by finding the change in cost divided by the change in volume. From 80 to 88 units, the cost increases by £100 (£1,300 - £1,200) for 8 units, which is £12.50 per unit (£100 / 8 units).

Assume the Following Information What Is the Variable Cost Per Unit? A)£15

Assume the Following Information What Is the Variable Cost Per Unit?
A)£15