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The following details relate to product R:
Level of activity (units) 1 000 2 000
(N$/unit) (N$/unit)
Direct materials 4.00 4.00
Direct labour 3.00 3.00
Production overhead 3.50 2.50
Selling overhead 1.00 0.50
Question 1 : The total fixed cost and variable cost per unit are:
Select one:
a. Total fixed cost (N$3 000) & Variable cost per unit (N$7.00)
b. Total fixed cost (N$3 000) & Variable cost per unit (N$8.50)
c. Total fixed cost (N$2 000) & Variable cost per unit (N$8.50)
d. Total fixed cost (N$2 000) & Variable cost per unit (N$7.00)
e. Total fixed cost (N$2 000) & Variable cost per unit (N$1.50)
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