The following details relate to product R:
|
Level of activity (units) |
1000 |
2000 |
|
(£/unit) |
(£/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 |
|
11.50 |
10.00 |
The total fixed cost and variable cost per unit are:
|
Total fixed |
Variable cost |
|
|
cost |
per unit |
|
|
A |
2000 |
1.50 |
|
B |
2000 |
7.00 |
|
C |
2000 |
8.50 |
|
D |
3000 |
7.00 |
|
E |
3000 |
8.50 |