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05-02-2020
Business

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Dreamland Company produces pillows. Each pillow has a variable cost of $8 and fixed costs are $78,000 per month. Each pillow sells for $17. If the company produces and sells 65,000 pillows in February, at this level of activity, total costs per unit are:

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ewomazinoade ewomazinoade

06-02-2020

Answer:

$9.20

Explanation:

Total cost per unit = Fixed cost per unit + average variable cost

Average fixed cost = $78,000 / 65,000 = $1.2

Total cost per unit = $1.2 + $8 = $9.20

I hope my answer helps you

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