Wu Company incurred $40,000 of fixed cost and $50,000 of variable cost when 4,000 units of product were made and sold. If the company's volume doubles, the total cost per unit will decrease
The cost per unit formula includes the sum of fixed and variable costs, which is divided by the total number of units manufactured during the period. To find the unit cost: Unit cost = (total fixed cost + total variable cost) / total production unit
The unit cost is higher than the cost of producing a single unit of the product. It also represents your break-even point, or the minimum value you must sell an item before you can start making a profit.
Learn more about the cost per unit here:https://brainly.com/question/205480
#SPJ4
