Arlington Company's highest point of total cost was $61,875 in June. Their point of lowest cost was $52,250 in December. The company makes a single product. Production volume in June was 7,000 units; production volume in December was 12,500 units. How much is the variable cost per unit?

Question

Quizplus · Accepted Answer

C) Calculations:
$61,875 - $52,250 = $9,625
$9,625/(12,500 - 7.000) = $1.75

Arlington Company's Highest Point of Total Cost Was $61,875 in June