Answer:
$1.2 per unit
Explanation:
Given that
Sold units = 150,000 for $2.00 per unit
Fixed expenses = $120,000
The computation of variable expenses per unit is shown below:-
Total Revenue = 210,000 x 3.80 = $798,000
Total Cost = Total Variable Cost + Total Fixed Cost
150,000 × $2.00 = Total Variable Cost + $120,000
$300,000 = Total Variable Cost + $120,000
Total Variable Cost = $300,000 - $120,000
= $180,000
Variable Cost Per Unit = Total Variable Cost ÷ sold units
= $180,000 ÷ 150,000
= $1.2 per unit
This is the right answer but this option is not provided in the given question.
