If Lonnie were to sell 50,000 units,the total expected cost per unit would be:
A) $2.20
B) $2.30
C) $2.50
D) $2.00

Name: If Lonnie were to sell 50,000 units,the total expected cost per unit would be: A) $2.20 B) $2.30 C) $2.50 D) $2.00
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Question

Quizplus · Accepted Answer

Variable cost per unit = Total variable cost ÷ Units = $60,000 ÷ 40,000 = $1.50 per unit
Total cost = Fixed cost + (Variable cost per unit × Units) = $40,000 + ($1.50 per unit × 50,000 units)
= $115,000
Cost per unit = $115,000 ÷ 50,000 units = $2.30 per unit

If Lonnie Were to Sell 50,000 Units,the Total Expected Cost