Question

Total fixed costs for Randolph Manufacturing are​ $754,000. Total​ costs, including both fixed and​ variable, are​ $5,000,000 if​ 160,000 units are produced. The variable cost per unit is

Answer 1

Maybe 5,000,000 subtracted by 754,000 to get the variable total cost (4,246,000). The divide that by 160,000 to get a cost of 26.54 per unit.

Answer 2

we are given that

Total fixed costs for Randolph Manufacturing are​ $754,000.

Total​ costs, including both fixed and​ variable, are​ $5,000,000.

160,000 units are produced.

Let the variabled cost per unit was $x.

Then we can write

`5,000,000=160,000x+ 754000\\ \\ \text{Now take the like terms togethere we get}\\ \\ 160,000x=5,000,000-754000\\ \\ 160,000x=42,46,000\\ \\ x=26.5375`

Hence the variable cost per unit is 26.5375$.