Answer:
<em>B) $1.54/unit.
</em>
Explanation:
Let's look at what we have;
<em>Total Cost = $ 500,000
; Fixed Cost = $ 260,000
</em>
Therefore, the Variable Cost will be = $500,000 - $260,000
<em>= $ 240,000
</em>
<em>Number of Units = 156,000 Units
</em>
<em>Variable cost per unit = Total Variable Cost / Number of Units
</em>
= $ 240,000/ 156,000 Units
<em>= $ 1.538 Per Unit
</em>
If we round it of to two decimal places =
The correct answer is B. $ 1.54 / Unit.