The Following Data Pertain to Costs at Martin Company - the Variable Cost Per Unit Is:
A)$6

question 183

Multiple Choice

The following data pertain to costs at Martin Company: $$\begin{array} { | l | c | } \hline \text { Total fixed costs } & \$ 250,000 \\\hline \text { Total variable costs } & \$ 80,000 \\\hline \text { Production level } & 40,000 \text { units } \\\hline\end{array}$$
- The variable cost per unit is:

• A)$6.25.
• B)$8.25.
• C)$4.25.
• D)$2.00.

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Definitions:

Marginal Utility

The added satisfaction or utility gained from consuming an additional unit of a good or service.

Spending

Engaging in transactions to acquire goods or services by spending money.

Income

Earnings accrued from work or investment sources on a consistent basis.

Goods

Physical items that satisfy human wants or needs, which can be bought, sold, or traded.