What is the per-unit production cost of product two?

Prepare for the PHFO Quantitative Analysis For Business Exam. Study with flashcards, multiple choice questions, hints, and explanations to ensure confidence and success in your exam!

Multiple Choice

What is the per-unit production cost of product two?

Explanation:
Per-unit production cost is found by dividing the total cost to produce a product by the number of units produced for that product. For product two, you take its total production cost and the quantity produced, and compute the quotient. The result here is 4, meaning total cost / units produced = 4. For example, if product two costs 40 in total and 10 units are made, the cost per unit is 40 ÷ 10 = 4. The other numbers would require different totals or quantities than those given in the data, so they wouldn’t match the computed ratio.

Per-unit production cost is found by dividing the total cost to produce a product by the number of units produced for that product. For product two, you take its total production cost and the quantity produced, and compute the quotient. The result here is 4, meaning total cost / units produced = 4. For example, if product two costs 40 in total and 10 units are made, the cost per unit is 40 ÷ 10 = 4. The other numbers would require different totals or quantities than those given in the data, so they wouldn’t match the computed ratio.

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