We are planning the staff level for a company. The managers want to know what it will cost for labor for each unit made. They have decided to staff for a moderate number of units. If volume is low, staff will be sitting around with nothing to do and cost per unit will be high.

If volume is high, they will have to pay overtime rates and cost per unit will be high. Based on the table below, what is the expected cost per unit for labor?

Units Sold Probability Labor Cost Per Unit

$20,000-25,000.10 \$ 60$

$25,001-30,000.4050$

$30,001-35,000.3550$

$35,001-40,000.1560$