Comptech hired Erwin & Associates to design a new computer-aided manufacturing facility that has the capacity to produce 250 computers per month. The variable costs for each computer are $150 and the fixed costs total $62,250 per month.

Required

What is the average cost per unit if the facility normally expects to operate at 80 percent of capacity?

 

Capacity	250
Variable cost	$ 150.00
Fixed Cost	$ 62,250.00
Normal Capacity	80%