A company expects to produce and sell 8,700 units of a single product. The following additional company information is available:
| Variable costs (per unit) | |
| Production costs | $18 |
| Nonproduction costs | $5 |
| Fixed costs (in total) | |
| Overhead | $345,000 |
| Nonproduction | $37,800 |
| Compute this company's total cost per unit. |
| $44.00 | |
| $23.00 | |
| $57.66 | |
| $67.00 | |
| $9.34 5 stars to whoever helps me with this, thanks in advance. |
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variable costComment
production cost (8700*18) 156600
non-production cost (8700*5) 43500
fixed cost
overhead 345000
non-production 37800
total cost 582900
cost per unit 67
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Variable cost = 8700*(18+5) = 8700*23
Total fixed cost = 345000 + 37800 = 382800
Total cost per unit = (8700*23 + 382800) /8700 = 67$
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