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If 120,000 units are produced, total costs are $343,000. Total fixed costs for Blue Peace Inc. are $175,000. The variable cost per unit is $4.32/unit.

If 120,000 units are produced, total costs are $343,000. Total fixed costs for Blue Peace Inc. are $175,000. The variable cost per unit is

$4.32/unit.
$1.46/unit.
$2.86/unit.
$1.40/unit.

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