Mcleod, Inc. incurred fixed costs of $ 400 comma 000. Total costs, both fixed and variable, are $ 450 comma 000 when 59 comma 000 units are produced. It sold 30 comma 000 units during the year. Calculate the variable cost per unit. (Round your answer to the nearest cent.)

Unitary variable cost= $1.72

Explanation:

Giving the following information:

Mcleod, Inc. incurred fixed costs of $400,000.

Total costs= $450,000

Units produced= 59,000

First, we need to calculate the total variable cost:

Total variable cost= total cost - total fixed cost

Total variable cost= 450,000 - 400,000

Total variable cost= 50,000

Now, the unitary variable cost:

unitary variable cost= 50,000/29,000

unitary variable cost= $1.72

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Explanation: