A company expects to produce and sell 7,000 units of a single product.The following additional company information is available: $\begin{array}{lr}
\text { Variable costs (per unit) } \
\text {Production costs } &\$ 20 \
\text { Nonproduction costs } &\$ 3 \
\text { Fixed costs (in total) } \
\text {Overhead } &\$ 175,000 \
\text { Nonproduction } &\$ 14,000
\end{array}$ Compute this company's total cost per unit.
A)$23
B)$45
C)$27
D)$50
E)$5

Question

A company expects to produce and sell 7,000 units of a single product.The following additional company information is available: $\begin{array}{lr}
 \text { Variable costs (per unit) } \
 \text {Production costs  } &\$ 20 \
 \text { Nonproduction costs } &\$ 3 \
 \text { Fixed costs (in total) } \
 \text {Overhead  } &\$ 175,000 \
 \text { Nonproduction } &\$ 14,000
\end{array}$ Compute this company's total cost per unit.
A)$23
B)$45
C)$27
D)$50
E)$5

Quizplus · Accepted Answer

The Answer of A company expects to produce and sell 7,000 units of a single product.The following additional company information is available: $\begin{array}{lr}
 \text { Variable costs (per unit) } \
 \text {Production costs  } &\$ 20 \
 \text { Nonproduction costs } &\$ 3 \
 \text { Fixed costs (in total) } \
 \text {Overhead  } &\$ 175,000 \
 \text { Nonproduction } &\$ 14,000
\end{array}$ Compute this company's total cost per unit.
A)$23
B)$45
C)$27
D)$50
E)$5

A Company Expects to Produce and Sell 7,000 Units of a Single