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Estimate unit variable costs and total fixed costs using the following data. The data represents total costs incurred in July. The firm produced 10 units
Estimate unit variable costs and total fixed costs using the following data.
The data represents total costs incurred in July. The firm produced 10 units in July.
rent | $200 |
direct materials + direct labor | $100 |
fire insurance | $50 |
sales commissions (5% of revenue) | $20 |
A. | unit variable cost = $10/unit, fixed cost=$270 | |
B. | unit variable cost = $12/unit, fixed cost=$250
| |
C. | unit variable cost = $120/unit, fixed cost=$250
| |
D. | unit variable cost = $15/unit, fixed cost=$220 |
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