Final answer:
The correct formula for the cost per unit with normal losses and no scrap value is total cost divided by total units produced minus normal losses.
Step-by-step explanation:
The correct formula for calculating the cost per unit when all output is fully complete but with normal losses in the process that have no scrap value is to take the total cost and divide it by the total units produced minus the normal losses. In this context, the appropriate choice from the options provided is C. Total cost divided by total units produced minus normal losses. This approach ensures that we are only accounting for the cost of fully complete units that can be sold or used, thus giving an accurate reflection of the cost per unit of sellable or usable goods. Calculating cost per unit is essential for businesses to understand their production efficiency and profitability. Average total cost, which is total cost divided by total output, provides important insight into the viability of a product's market price compared to its production cost. Keeping a firm's average cost of production lower than the market price means the firm will likely earn profits.