Is the total value income earned in a year exactly
Answer:
$953 per unit
Explanation:
For computing the average cost per unit first we have to determine the operating capacity at 85% after that the total cost which is shown below:
Operating capacity at 85% is
= 300 computers × 85%
= 255 computers
Now the total cost is
= Variable cost + Fixed cost
where,
Variable cost is
= $660 × 255 computers
= $168,300
And, the fixed cost is $74,700
So, the total cost is
= $168,300 + $74,700
= $243,000
Now the average cost per unit is
= $243,000 ÷ 255 computers
= $953 per unit
