The Highest Value of Total Cost Was $70,000 in June

question 108

Multiple Choice

The highest value of total cost was $70,000 in June for Fargo Beverages,Inc.Its lowest value of total cost was $52,000 in December.The company makes a single product.The production volume in June and December were 13,000 and 7,000 units,respectively.What is the variable cost per month? (Round your answer to the nearest cent. )

• A)$1.38 per unit
• B)$2.57 per unit
• C)$3.00 per unit
• D)$11.67 per unit

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