In a Particular Process, the Fixed Costs Are Calculated at $40,000

question 12

Multiple Choice

In a particular process, the fixed costs are calculated at $40,000 and the variable costs at $1.50 per unit.
If 10,000 units are to be produced, what is the average cost per unit?

• A) $1.50
• B) $2.00
• C) $4.00
• D) $5.50
• E)none of the above