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vichka [17]
3 years ago
9

McLeod, Inc. incurred fixed costs of $300,000 and variable costs of $200,000 for total costs of $500,000 when 59,000 units are p

roduced. It sold 35,000 units during the year. Calculate the variable cost per unit. (Round your answer to the nearest cent.)
Business
1 answer:
Ad libitum [116K]3 years ago
3 0

Answer:

$3.389

Explanation:

Data provided as per the question below

Fixed cost = $300,000

Variable cost = $200,000

Total cost = $500,000

Units produced = 59,000

The computation of variable cost per unit is shown below:-

Variable cost per unit = Variable cost ÷ Units produced

= $200,000 ÷ 59,000

= $3.389

Therefore we applied the above formula.

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Suppose France can produce four phones or three computers with one unit of labor, and Sweden can produce one phone or two comput
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Option (a) is correct.

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