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

Costs and cost behaviour — practice question

Each unit of a product incurs a variable cost of $31.32$. The total fixed costs come to $93\,600$. If output is $13\,000$ units, the margin of safety is $5000$ units. What selling price per unit does this imply?

  • A$36.52$
  • B$38.52$
  • C$43.02$
  • D$50.04$

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