Question

The maple company has total fixed costs of​ $420,000. it also has​ $220,000 in total variable costs. these costs exist at a production level of​ 110,000 units. the variable cost per unit is

Answer 1

$2 per unit. The variable cost per unit is simply the total variable costs divided by the number of units. So $220,000 / 110,000 = $2 Therefore the variable cost per unit for the maple company is $2 per unit.