Answer:
The variable cost per bat is $10.15
Step-by-step explanation:
The total cost can be calculated by multiplying the average cost per unit by the number of units. At the production level of 8000 units at $13 per unit, the total cost will be,
Total cost = 13 * 8000 = $104000
The total cost is made up of both fixed and variable costs.
Total variable costs = Total costs - total fixed costs
Total variable costs = 104000 - 22800 = $81200
The variable cost per unit = 81200 / 8000 = $10.15 per unit