Flash Eyes sells mascara.In June, it produced and sold 10,000 tubes of mascara.For the month, total variable costs were $21,000 and fixed costs totaled $24,000.In July, the company produced and sold 11,000 tubes of mascara.Which of the following statements is correct for July?

Question

Quizplus · Accepted Answer

Since the company sold 11,000 tubes of mascara in July, and the total variable costs in June were $21,000 for 10,000 tubes of mascara, we can calculate the variable costs per unit as follows:

Variable costs per unit = Total variable costs / Number of units produced

Variable costs per unit = $21,000 / 10,000 = $2.10

Therefore, the variable costs per unit in July will be $2.10. Option B is correct.

Flash Eyes Sells Mascara