A company incurs a total cost of $50,000 for producing 5,000 units. What is the average cost per unit?

Practice Questions

1 question
Q1
A company incurs a total cost of $50,000 for producing 5,000 units. What is the average cost per unit?
  1. $8
  2. $10
  3. $12
  4. $15

Questions & Step-by-step Solutions

1 item
Q
Q: A company incurs a total cost of $50,000 for producing 5,000 units. What is the average cost per unit?
Solution: Average Cost per Unit = Total Cost / Number of Units = $50,000 / 5,000 = $10.
Steps: 6

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