Which of the average cost to produce one unit is

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Problem 1: During its first year of operations, Beta Company paid $16,000 for direct materials and $17,000 in wages for production workers. Lease payments and utilities on the production facilities amounted to $7,000. General, selling, and administrative expenses were $6,000. The company produced 5,000 units and sold 4,000 units for $15.00 a unit. The average cost to produce one unit is which of the following amounts?

Option 1: $9.20

Option 2: $8.00

Option 3: $11.50

Option 4: $10.00

Reference no: EM132950364

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