The Akron Slugger Company produces various types of wooden baseball bats.It has calculated the average cost per unit of a production level of 7,500 bats to be $10.00.If $22,500 of the total costs are fixed,what is the variable cost of producing each bat?
A)$10.00
B)$52,500
C)$7.00
D)$3.00

Question

Quizplus · Accepted Answer

C)
Total cost = $10 × 7,500 = $75,000
$75,000 = Variable cost per unit (7,500 )+ $22,500
$7.00 = Variable cost per unit

The Akron Slugger Company Produces Various Types of Wooden Baseball