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Question 20 2.5 pts Estimate unit variable costs. Production volume was 10 units. fire insurance $100 depreciation $240 rent
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The correct answer is Option (A) $80 per unit.

The Variable cost are assembly worker's wage and direct material. These totals to $800. So, the unit produced is 10 and thus unit variable cost is $80.

The Fire insurance, Depreciation, Rent and Supervisor salary is fixed cost. These are incurred at a fixed rate at any level of activity.

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