The following data is available:

Selling Price Per Unit $20.00

Variable Cost Per Unit $12.00

Fixed Costs 10,000

Units Sold 2,000

Required

• Calculate the total costs and costs per unit assuming that 2,000 units are sold
• Calculate the total costs and costs per unit assuming that 3,000 units are sold
• How would a company use cost per unit data?

Round the costs per unit calculations to two decimals

Questions	Answers
What are the total costs at 2,000 units?
What is the cost per unit at 2,000 units?
What are the total costs at 3,000 units?
What is the costs per unit at 3,000 units?

Calculations / Explanations