Question
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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