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At a volume of 8,000 units, the total cost is $ 2,780,000 and at a volume of 11,000 units, the total cost is $ 3,740,000.

At a volume of 8,000 units, the total cost is $ 2,780,000 and at a volume of 11,000 units, the total cost is $ 3,740,000. The fixed costs are the same for both volumes.

a) Calculate the variable unit cost. b) Calculate the fixed costs. c) Explain why the total unit cost changes at the different volumes.

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