Answer:
$27 per unit
Explanation:
Given that,
At production and sales level of 3,000 units,
Fixed cost = $60,000
Variable cost = $36,000
Variable cost per unit:
= Variable cost ÷ No. of units produced and sold
= $36,000 ÷ 3,000
= $12 per unit
Hence,
At production and sales level of 4,000 units,
Total cost:
= Fixed cost + Variable cost
= $60,000 + (4,000 units × $12 per unit)
= $60,000 + $48,000
= $108,000
Therefore, the company's cost per unit is as follows;
= Total cost ÷ No. of units
= $108,000 ÷ 4,000
= $27 per unit
