XYZ Makes One Product Which It Sells for £100 Per

Multiple Choice

XYZ makes one product which it sells for £100 per unit. Annual sales are 4,000 units. Break-even point is 2,000 units and total annual fixed costs are £120,000. What is the variable cost per unit of production and sales?

A) £30
B) £40
C) £60
D) £70