Jupiter, Inc. incurred fixed costs of $300,000. Total costs, both fixed and variable, are $500,000 when 59,000 units are produced. It sold 35,000 units during the year. Calculate the variable cost per unit. (Round your answer to the nearest cent.)
A) $8.47
B) $14.29
C) $5.08
D) $3.39
D .D)
Total costs $500,000
Less: fixed costs (300,000 )
Variable costs (A ) 200,000
Number of units (B) 59,000
Variable cost per unit (A ) / (B) $3.39
Business
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