Question: A company has $8.00 per unit in variable cost and $3.00 per unit in fixed cost at a volume of 50,000 units. If the company
A company has $8.00 per unit in variable cost and $3.00 per unit in fixed cost at a volume of 50,000 units. If the company uses cost plus pricing, which of the following is true?
The company should use a unit cost of $11.00 per unit only at a volume of 50,000 units
The company should use a unit cost of $11 at all volumes
The company should use a unit cost of $11 as long as it stays within the relevant range of volume
There is no volume at which the company should use a unit volume of 50,000
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