Given the graph shown below, what is the variable cost per unit to be used in the cost equation for the line at 400 units?
A) $1.00
B) $1.25
C) $2.00
D) $2.25

Name: Given the graph shown below, what is the variable cost per unit to be used in the cost equation for the line at 400 units? A) $1.00 B) $1.25 C) $2.00 D) $2.25
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Question

Given the graph shown below, what is the variable cost per unit to be used in the cost equation for the line at 400 units? 
A) $1.00 
B) $1.25 
C) $2.00 
D) $2.25

Quizplus · Accepted Answer

Total cost - Fixed cost = Total variable cost; TC (400 units) of $1,000 - Fixed cost (400 units) of $500 = Total variable cost (400 units) of $500; $500 ÷ 400 units = $1.25

Given the Graph Shown Below, What Is the Variable Cost