Question: Estimate average cost per unit as per life cycle costing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question: Estimate average cost per unit as per life cycle costing
1
2
3
4
5
Estimated
production
(units)
J
12,000
18,000
80,000
25,000
8,000
Fixed cost
per annum
(AED)
C
60,000
60,000
60,000
60,000
60,000
Variable cost
@ AED 2
(AED)
24,000
36,000
1,60,000
50,000
16,000
Total cost
(AED)
84,000
96,000
2,20,000
1,10,000
76,000
Cost per unit
(AED)
7.00
5.33
2.75
4.40
9.50
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