Assume that Charlie's Brownies expects to produce and sell 3,000 units of a single product, a gift box containing an assortment of brownie


Assume that Charlie's Brownies expects to produce and sell 3,000 units of a single product, a gift box containing an assortment of brownies that showcases the company's many flavors. The following additional company information is available:
 
  Variable costs (per unit)
     Production costs $10
     Nonproduction costs $1
  Fixed costs (in total)
     Overhead $80,000
     Nonproduction $1,000
 
Compute Charlie's Brownies total cost per unit.

$11.00

$27.00

$36.67

$38.00

$1.33   
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    Best answer
  • M V N D BHAVANI
    M V N D BHAVANI answered this 16 minutes later
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    229 answers • 66% Best Answer
    Total Cost Per Unit = (Total Variable Costs Per Unit)+(Total Fixed Costs\div Units Produced)
    Total Cost Per Unit = (10+1)+(80,000+1,000\div 3,000)
    Total Cost Per Unit = 11+(81,000\div 3,000)
    Total Cost Per Unit = 11+27
    Total Cost Per Unit = 38
    Therefore the total cost per unit is $38.
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  • Rajesh Iyer
    Rajesh Iyer answered this 22 minutes later
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    16 answers • 67% Best Answer
    Computation charlies Brownies total cost per unit
    Description Cost per unit ( 3000 units)
    Production cost $ 10
    Non production cost $ 1
    Total variable cost $ 11
    Add - Fixed cost

    Overheads ($ 80000/3000) $ 26.67
    Non production overhead ( $1000/3000) $ 0.33
    Total fixed cost $ 27
    Total cost $ 38
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  • Shadab Ahmed
    Shadab Ahmed answered this 2 hours later
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    9 answers • 14% Best Answer
    VARIABLE COST (30000+3000) $33000
    FIXED COST (80000+1000)   $81000
    TOTAL COST $114000
    COST PER UNIT $38
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