Question

Bauer Supply had total cost of goods sold of $1,400 with 140 units available for sales. What was the average cost per unit?

Answer 1

$10

Average cost per unit is $1,400/140 = $10

Answer 2

Average cost per unit = $10

Step-by-step explanation:

Bauer supply had total cost of goods sold of $1400 with 140 units available for sales. This simply means the worth/cost of goods available for sale is $1400 and the number of goods available for sale is 140 units.

The average cost per unit simply implies the cost of each unit as related to the total worth/cost($1400) and the number of units available.

Mathematically,

Average cost = Total cost/number of unit available

Average cost = 1400/140

Average cost = $10

The average cost per unit is $10