Final answer:
To find the average cost per unit, divide the total cost ($120,000) by the quantity of units produced (9,500), resulting in an average cost per unit of $12.63. The correct answer is C. $12.63.
Step-by-step explanation:
The given question asks how to calculate the average cost per unit when Sheffield Corp incurs a total cost of $120,000 to produce 9,500 units. The formula to find the average cost per unit is to divide the total cost by the quantity of units produced. In this case, we divide the total cost of $120,000 by 9,500 units to get the average cost per unit.
Average Cost per Unit = Total Cost / Quantity of Units Produced
Average Cost per Unit = $120,000 / 9,500 units
Average Cost per Unit = $12.63
Therefore, the correct answer is C. $12.63.