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