The Variable Costs Per Unit Are $4 When a Company

question 66

Multiple Choice

The variable costs per unit are $4 when a company produces 10,000 units of product. What are the variable costs per unit when 8,000 units are produced?

• A)$2.00.
• B)$4.00.
• C)$4.50.
• D)$5.00.
• E)$5.50.

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Definitions:

Lowest Cost Carrier

A transportation or shipping company that offers the least expensive rates for freight services while meeting the required delivery criteria.

Place Utility

The value added to products by having them in a location where they are accessible to consumers when needed.

Production Points

Places or stages in the manufacturing process where goods are created, assembled, or significantly altered.

Finished Product

The final output of the production process, ready for sale or distribution to customers.