Benjamin Company produces and sells a product that has variable costs of

$6

per unit and fixed costs of

$210,000

per year.

Requirements

1.	Compute the unit cost at a production and sales level of 14,000 units per year.
2.	Compute the unit cost at a production and sales level of 15,000 units per year.
3.	Which of these unit costs is most accurate? Explain.

Question content area bottom

Part 1

Requirements 1 and 2. Compute the unit costs at a production and sales level of

14,000

units per year and

15,000

units per year. (Enter the cost per unit to the nearest cent.)

	Sales level
	14,000 units per year	15,000 units per year
Variable cost
Fixed cost
Total cost
Cost per unit