Question

Rhome corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:.

Answer 1

$2.40

Step-by-step explanation:

The computation of the fixed manufacturing cost per unit is shown below:

= Total fixed manufacturing overhead cost ÷ number of units produced

= 4,000 units × $3 ÷ 5,000 units

= $12,000 ÷ 5,000 units

= $2.40

Hence, the correct option is last i.e. $2.40

We simply applied the above formula

All other things should be ignored