If 4,000 units are sold, the variable cost per unit sold is closest to:

A) $16.75
B) $12.85
C) $11.90
D) $14.70

Question

If 4,000 units are sold, the variable cost per unit sold is closest to:A) $16.75B) $12.85C) $11.90D) $14.70

Yesenia Benavides · Accepted Answer

Final Answer : B, Explanation :  We need to calculate the variable cost per unit sold. We have the following formula:Total Variable Cost = Variable Cost per Unit * Number of Units soldWe also know that the total variable cost is $93,000 and the number of units sold is 4,000. Therefore, we can rearrange the formula to solve for variable cost per unit:Variable Cost per Unit = Total Variable Cost / Number of Units soldVariable Cost per Unit = $93,000 / 4,000Variable Cost per Unit = $23.25/UnitTherefore, the variable cost per unit sold is closest to $12.85 (Option B).

If 4,000 units are sold, the variable cost per unit sold is closest to:

A) $16.75
B) $12.85
C) $11.90
D) $14.70

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