Asked by Meagan Bowman on Jun 08, 2024
Verified
The variable costs per unit are $4 when a company makes 10 000 units. What are the per unit variable costs when 8000 units are produced?
A) $6.00
B) $4.00
C) $4.50
D) $5.00
Variable Costs
Expenses that change in proportion to the production or sales figures.
Per Unit
A measure or cost expressed per single item or quantity of a product or service.
- Comprehend the behavior of variable costs per unit with changes in production volume.
Verified Answer
MM
Madison McguirtJun 11, 2024
Final Answer :
B
Explanation :
Variable costs per unit remain constant regardless of the number of units produced. Therefore, if the variable cost per unit is $4 at 10,000 units, it will also be $4 at 8,000 units.
Learning Objectives
- Comprehend the behavior of variable costs per unit with changes in production volume.
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