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Saved Wu Company incurred $124,000 of fixed cost and $140,000 of variable cost when 3,500 units of product were made and sold
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Answer #1

Variable cost per unit=(140,000/3500)=$40 per unit

Hence total cost at 4000 units=Total fixed cost+Total variable cost

=124,000+(40*4000)=$284000

Hence cost per unit=284000/4000

=$71.00

NOTE:Total fixed costs and variable cost per unit do not change with change in units

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