Total fixed costs for Randolph Manufacturing are $754,000. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The variable cost per unit is

A) $6.67/unit.
B) $5.03/unit.
C) $11.69/unit.
D) $1.64/unit.

D
Explanation: D)
Cost equation y = vx + f
$1,000,000 = 150,000x + 754,000
246,000 = 150,000x
$1.64 = x

Business

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