When 24,000 units are produced, variable costs are $12.00 per unit. Therefore, when 18,000 units are produced ________.
A) variable costs will remain at $12.00 per unit
B) variable costs will total $288,000
C) variable unit costs will increase to $16.00 per unit
D) variable unit costs will decrease to $9.00 per unit

Question

Quizplus · Accepted Answer

According to the given information, the variable cost per unit remains constant at $12.00 per unit regardless of the volume of production. Therefore, when 18,000 units are produced, the variable costs will still be $12.00 per unit.

When 24,000 Units Are Produced, Variable Costs Are $12