Question

A company expects to produce and sell 7,000 units of a single product. The following additional company information is available:


Variable costs (per unit)
Production costs $20
Nonproduction costs $3
Fixed costs (in total)
Overhead $175,000
Nonproduction $14,000

Compute this companys total cost per unit.
A. $23
B. $45
C. $27
D. $50
E. $5

Answer

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