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Cost per Unit

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January 26th, 2023

At a sales volume of 30,000 units, Carne Company’s total fixed costs are 40,000 and total variable costs are 52,500. The relevant range is 20,000 to 40,000 units.
Reference: 2-8

If Carne Company were to sell 40,000 units, the total expected cost per unit would be:

(a) 3
(b) 2.75
(c) 2.83
(d) 1.75

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