Rincon Gifts had the following costs in May when 400 ceramic pots were produced: materials, $4,200; labor cost, $1,600; depreciation, $800; rent, $700; and other fixed costs, $500. Which one of the following is the correct cost for Rincon?

A. The fixed cost per unit is $3.75.

B. The variable cost per unit is $14.50.

C. The fixed cost per unit is $19.50.

D. The total cost per unit is $14.50.

Answer rating: 100% (QA)

Correct answer B The variable cost per unit is 1450 Explanation and working ... View the full answer