A company has produced the following information for a product it is about to launch:
20X4 20X5 20X6
Units 2,000 5,000 7,000
Variable production cost per unit $2.30 $1.80 $1.20
Fixed production costs $3,000 $3,500 $4,000
Variable selling cost per unit $0.50 $0.40 $0.40
Fixed selling costs $1,500 $1,600 $1,600
Administrative costs $700 $700 $700
What is the life-cycle cost per unit (to two decimal places)?
Ans: ______________
GOOD DAY Sir,
The answer in the kit says 3.22.
Which is correct and i also got it right, but then i do it other way what if we make the fixed production ,selling and admin cost to per unit and then add up the total per unit cost, but it sums up to 11.26 which is wrong i wanna know whats the math/concept behind it
Thank you