What is the unit cost of a product if the firm expects to sell 100,000 units,fixed costs being $1 million,and variable cost per unit being $20?

Question

Quizplus · Accepted Answer

The unit cost of a product is calculated by adding the variable cost per unit to the fixed cost per unit. The fixed cost per unit is the total fixed costs divided by the number of units expected to be sold. In this case, the fixed cost per unit is $1,000,000 / 100,000 = $10. Adding the variable cost per unit of $20 to this gives a total unit cost of $30.

What Is the Unit Cost of a Product If the Firm