Assume the following information: $$\begin{array} { l l }
\text { Volume } & \text { Total Cost } \
\hline 100 \text { units } & \$ 1,300 \
90 \text { units } & \$ 1,500 \
106 \text { units } & \$ 1,750
\end{array}$$ What is the variable cost per unit? (Round your answer to three decimal places.)
A)$15.625
B)$28.125
C)$13.175
D)$20.178

Question

Assume the following information: $$\begin{array} { l l } 
\text { Volume } & \text { Total Cost } \
\hline 100 \text { units } & \$ 1,300 \
90 \text { units } & \$ 1,500 \
106 \text { units } & \$ 1,750
\end{array}$$ What is the variable cost per unit? (Round your answer to three decimal places.)
A)$15.625
B)$28.125
C)$13.175
D)$20.178

Quizplus · Accepted Answer

The variable cost per unit is the change in total cost divided by the change in volume. In this case, the change in total cost is $1,750 - $1,300 = $450, and the change in volume is 106 units - 100 units = 6 units. Therefore, the variable cost per unit is $450 / 6 = $15.625.

Assume the Following Information What Is the Variable Cost Per Unit? (Round Your Answer