FNSACC412 Prepare Operational Budgets - Flexible Budgets

Topic 7 - Activities

Question 19

Firm X has total costs of $1,200,000, fixed costs of $800,000 and produces 4,000 units. What is the variable cost per unit?

1. $100 per unit
2. $1.000 per unit
3. $500 per unit
4. $10 per unit