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Question
Assume that Charlies Brownies expects to produce and sell 5,000 units of a single product, a gift box containing an assortment of brownies that showcases the companys many flavors. The following additional company information is available:
| Variable costs (per unit) | |
| Production costs | $30 |
| Nonproduction costs | $2 |
| Fixed costs (in total) | |
| Overhead | $100,000 |
| Nonproduction | $5,000 |
Compute Charlies Brownies total cost per unit.
A. $32
B. $50
C. $53
D. $3
E. $21
Answer
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