JB Company has fixed costs of $300,000. Total costs, both fixed and variable, are $378,000 when 40,000 units are produced. How much is the variable cost per unit? (Please round to the nearest cent.)

Name: JB Company has fixed costs of $300,000. Total costs, both fixed and variable, are $378,000 when 40,000 units are produced. How much is the variable cost per unit? (Please round to the nearest cent.)
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Question

Quizplus · Accepted Answer

D) Calculations:
$378,000 - $300,000 = $78,000
$78,000/40,000 = $1.95

JB Company Has Fixed Costs of $300,000