Answer:
$18 per unit
Explanation:
Average cost per unit is the cot of the product to product on average basis. Any product uses different costs to produce like material, Labor and overheads.
In this question there is only material cost of Copper and Zinc material to make Alloy.
Total Cost = 4,000 units [($3x3)+($3x3)] = $72,000
Average cost per unit = Total Cost / Total numbers of unit
Average cost per unit = $72,000 / 4,000 = $18 per unit
Answer:
the average cost per unit when 4,000 units of the alloy are produced : $18.00
Explanation:
Step 1. Calcutate the the Unit Cost of the New
Materials Costs
Copper (3 units × $3) = $9.00
Zinc (3 units $3) = $9.00
Total = $18.00
Step 2 Calculate the Total Cost of the New
Total Cost=Unit Cost × Total Units of Production
= $18.00 × 4,000 units
= $72,000
