A Company Expects to Produce and Sell 7,000 Units of a Single

question 64

Multiple Choice

A company expects to produce and sell 7,000 units of a single product.The following additional company information is available:
$$\begin{array} { l r r } \text{Variable costs (per unit) }&&\\~\text{Production costs}&&\$20\\~\text{Nonproduction costs}&&\$3\\\text{Fixed costs (in total) }&&\\~\text{Overhead}&&\$175,000\\~\text{Nonproduction}&&\$14,000\\\end{array}$$
Compute this company's total cost per unit.

• A) $23
• B) $45
• C) $27
• D) $50
• E) $5

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