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Answer:
$5 per unit.
Explanation:
At an activity level of 3,000 units, we have:
Variable cost per unit = Total variable cost / Units produced = $15,000 / 3,000 = $5
Since the variable cost per unit must be equal at both lowest and highest level of activities, theerefore, the variable cost per unit at 3,500 is also $5 per unit.
The variable cost per unit is $5 per unit.
- The calculation is as follows:
At an activity level of 3,000 units, we have:
Variable cost per unit = Total variable cost ÷ Units produced
= $15,000 ÷ 3,000
= $5
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