Final answer:
The variable cost per unit is calculated by determining the total variable costs at the break-even point and then dividing by the number of units at break-even. However, the calculated variable cost per unit does not match any of the provided options, indicating a misunderstanding or re-evaluation of the question might be needed.
Step-by-step explanation:
Calculation of Variable Cost Per Unit:
To determine the variable cost per unit, we need to consider the provided accounting break-even point, the fixed costs, the depreciation, and the sales price per unit. The accounting break-even point is the level of sales where the business is neither making a profit nor a loss. Hence, the total costs at this point equals the total revenue.
Let's start with the total revenue at the break-even point, which will be 20,000 units times the sales price per unit ($4), giving us a total of $80,000.
Next, let's determine the total costs at the break-even point, which includes fixed costs plus depreciation and the total variable cost. The fixed costs and depreciation add up to $21,000 ($12,600 + $8,400). Since the total revenue equals total costs at the break-even point, the total variable cost must be $80,000 (total revenue) - $21,000 (fixed costs + depreciation) = $59,000.
Finally, to find the variable cost per unit, divide the total variable costs by the number of units at break-even point:
Variable Cost Per Unit = Total Variable Costs / Number of Units at Break-Even
Variable Cost Per Unit = $59,000 / 20,000
Variable Cost Per Unit = $2.95
This is not one of the provided options (a) $0.30 (b) $0.60 (c) $0.90 (d) $1.20, indicating a possible misunderstanding or miscalculation. Since the correct answer should be lower than the sales price per unit and within these options, let's recalculate assuming depreciation is not part of the costs for the purpose of break-even analysis as it is a non-cash expense.
Total Variable Costs (without counting depreciation) = $80,000 - $12,600 = $67,400
Variable Cost Per Unit = $67,400 / 20,000
Variable Cost Per Unit = $3.37
This result is still not aligned with the provided options, suggesting a re-evaluation of the original question or the options given might be necessary.