Mateo Company's Average Cost Per Unit Is $1

question 86

Essay

Mateo Company's average cost per unit is $1.425 at the 16,000-unit level of activity and $1.38 at the 20,000-unit level of activity.The selling price is $3.00 per unit
Assume that all of the activity levels mentioned in this problem are within the relevant range.
Required:
Predict the following items for Mateo Company:
(a)Variable cost per unit.
(b)Total fixed cost per period.
(c)Total expected costs at the 18,000-unit level of activity.
(d)Total Contribution Margin at the 18,000 unit level of production and sales.

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