JB Company Has Fixed Costs of $300,000

question 137

Multiple Choice

JB Company has fixed costs of $300,000. Total costs, both fixed and variable, are $378,000 when 40,000 units are produced. How much is the variable cost per unit? (Please round to the nearest cent.)

• A) $9.45
• B) $2.78
• C) $7.50
• D) $1.95