Homework Answers
OPTION - $5 Per Unit.
In Year 1 Depreciation cost per unit would be = Depreciation Cost/Units Produced = $60,000/10,000 =$6. Depreciation cost (Fixed Cost) always remains constant irrespective of level of production. Variable cost per unit remains constant irrespective of level of production.
In Year 2 Depreciation Cost per Unit(at 12,000 Units Production) would be => $60,000/12,000 units = $5 Per Unit.
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