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Sunny_sXe [5.5K]
2 years ago
5

At an activity level of 3,000 units, North Corporation's total variable cost is $15,000 and its total fixed cost is $20,000. For

the activity level of 3,500 units, compute the variable cost per unit.
Business
1 answer:
oee [108]2 years ago
3 0

Answer:

$5 per unit.

Explanation:

At an activity level of 3,000 units, we have:

Variable cost per unit = Total variable cost / Units produced = $15,000 / 3,000 = $5

Since the variable cost per unit must be equal at both lowest and highest level of activities, theerefore, the variable cost per unit at 3,500 is also $5 per unit.

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7. Problems and Applications Q7 A dozen eggs cost $0.96 in December 2000 and $2.75 in December 2015. The average wage for worker
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