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Blossom Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.
Blossom Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.
Output in Units | Rent Expense | Direct Materials | ||
1,000 | $5,985 | $4,788 | ||
2,000 | 5,985 | 6,900 | ||
3,000 | 9,576 | 6,900 | ||
4,000 | 9,576 | 9,200 | ||
5,000 | 9,576 | 11,500 | ||
6,000 | 9,576 | 13,800 | ||
7,000 | 9,576 | 16,100 | ||
8,000 | 9,576 | 18,400 | ||
9,000 | 11,970 | 35,072 | ||
10,000 | 11,970 | 41,895 | ||
11,000 | 11,970 | 52,668
|
Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places e.g. 2.25.)
Variable costs per unit per unit |
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