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At an activity level of 2 0 , 0 0 0 units, total variable costs were $ 4 5 , 0 0 0 while total

At an activity level of 20,000 units, total variable costs were $45,000 while total fixed costs were $31,200. If 26,000 units are produced and it is within the relevant range, which of the following statements is CORRECT?
Multiple Choice
Total unit cost would equal $3.45.
Total unit cost would equal $4.80.
Fixed cost per unit would equal $1.30.

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