EXERCISE 5-6 (20 MINUTES)

30,000 40,000 50,000

Total costs: Variable costs... $180,000 $240,000 $300,000 Fixed costs... 300,000 300,000 300,000 Total costs ... $480,000 $540,000 $600,000 Cost per unit: Variable cost ... $ 6.00 $ 6.00 $ 6.00 Fixed cost ... 10.00 7.50 6.00 Total cost per unit... $16.00 $13.50 $12.00