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Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units

Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production:

Using the cost data from Rose Company, determine the variable cost per unit and the total variable cost if 21,000 units are produced.

5 options:

Variable cost per unit: $25

Total variable cost: $525,000

Variable cost per unit: $27

Total variable cost: $567,000

Variable cost per unit: $24

Total variable cost: $504,000

Variable cost per unit: $22

Total variable cost: $462,000

Variable cost per unit: $27

Total variable cost: $567,000

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