Rom Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were: $\begin{array}{ll}
\text { Materials cost } & \$ 5,200 \
\text { Labor cost } & 2,600 \
\text { Rent } & 1,200 \
\text { Depreciation } & 1,700 \
\text { Other fixed costs } & 4,600\\text { Total } & \$ 15,300 \
\end{array}$ Materials and labor are the only variable costs. The company has estimated that it can increase sales to 70 generators in August if it changes the selling price of generators to $450 instead of the current $480 per unit. What is expected to occur to the cost per unit given the expected changes?

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The Answer of Rom Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were: $\begin{array}{ll}
\text { Materials cost } & \$ 5,200 \
\text { Labor cost } & 2,600 \
\text { Rent } & 1,200 \
\text { Depreciation } & 1,700 \
\text { Other fixed costs } & 4,600\\text { Total } & \$ 15,300 \
\end{array}$ Materials and labor are the only variable costs. The company has estimated that it can increase sales to 70 generators in August if it changes the selling price of generators to $450 instead of the current $480 per unit. What is expected to occur to the cost per unit given the expected changes?

Rom Generators Is in the Process of Preparing a Production