Question: 16. Consider the following simplified example. Ford has quarterly fixed costs of $1,200,000 and expected sales of 100 units. Variable costs are $15,000 per unit.

16. Consider the following simplified example. Ford has quarterly fixed costs of $1,200,000 and expected sales of 100 units. Variable costs are $15,000 per unit. If Ford produces and sells 100 units during the quarter, what would its total cost per unit sold be? Using the same example from #16 above, if Ford produces 200 units and sells 100 units during the quarter, what would its total cost per unit sold be? Provide an explanation why your answer is different from your answer in #16.

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