Answer:
If the company's volume increases to 3,900 units, the total cost per unit will be $69 per unit
Explanation:
Variable cost per unit = variable cost/3,400 = $132,600/3,400 = $39
If the company's volume increases to 3,900 units:
Total Variable cost = Variable cost per unit x 3,900 = $39 x 3,900 = $152,100
Total fixed cost will not change = $117,000
Total cost = Total Variable cost + Total fixed cost = $152,100 + $117,000 = $269,100
The total cost per unit = Total cost/3,900 = $269,100/3,900 = $69 per unit.
