Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A factory makes $1100$ units each day. The daily machinery set-up expense is $2000$. The direct material cost for each unit is $3$. Machine operators receive $400$ per day. Each operator is able to produce at most $200$ units per day. What is the average cost per unit?

  • A$5.00$
  • B$5.18$
  • C$6.82$
  • D$7.00$

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