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What the total expected cost per unit for lonnie company

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Reference no: EM132755396

At a sales volume of 40,000 units, Lonnie Company's total fixed costs are R40,000 and total variable costs are R60,000. The relevant range is 30,000 to 50,000 units.

Problem 1: If Lonnie were to sell 50,000 units, the total expected cost per unit would be:

Option 1: R2.30.
Option 2: R2.20.
Option 3: R2.50.
Option 4: R2.00.

Reference no: EM132755396

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