The cost per unit of a product $160 (75% variable), when production is 10,000 units. When the production increases by 25%, the CPU will be $ _

Cost per unit is $152 = $1,900,000/12,500 (Variable cost is $1,500,000 & Fixed cost is $400,000)

Ans: $152

variable cost: 160*75%= $120

fixed cost:   160-120= $40    total fixed cost:40*10000= $400,000

cost per unit for production of12500 units: 120 +400,000/12500=    $152

1500000+400000=1900000/12500=15.2           (125/100)=12.5

ie, $152

Cost per unit = $152

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