Banana Computers Inc. has experienced the following results in the previous 3 months: Month 1 - Produced 2,000 units at a total cost of $30,000 Month 2 - Produced 4,000 units at a total cost of $50,000 Month 3 - Produced 6,000 units at a total cost of $70,000 What are the variables costs for this firm (in dollars per each unit)? ***Variable costs are consistent over this range of production, i.e. the firm has not yet reached maximum production capacity.

Banana Computers Inc. has experienced the following results in the previous 3 months:

• Month 1 - Produced 2,000 units at a total cost of $30,000
• Month 2 - Produced 4,000 units at a total cost of $50,000
• Month 3 - Produced 6,000 units at a total cost of $70,000

***Variable and fixed costs are consistent over this range of production, i.e. the firm has not yet reached maximum production capacity.

What are Banana's fixed costs?

Answer rating: 100% (QA)

To calculate the variable cost per unit we can use the information provided and the assumption that ... View the full answer