An organisation manufactures a single product. The total cost of making 4,000 units is $20,000 and the total cost of making 20,000 units is $40,000. Within this range of activity the total fixed costs remain unchanged.What is the variable cost per unit of the product?
A、$0.80
B、$1.20
C、$1.25
D、$2.00
A、$0.80
B、$1.20
C、$1.25
D、$2.00
【参考答案及解析】
Units $ Total cost of 20,000 = 40,000 Total cost of 4,000 = 20,000 Therefore variable cost of 16,000 = 20,000 Variable cost per unit = $20,000/16,000 units = $1.25 per unit.
Units $ Total cost of 20,000 = 40,000 Total cost of 4,000 = 20,000 Therefore variable cost of 16,000 = 20,000 Variable cost per unit = $20,000/16,000 units = $1.25 per unit.