DeMaris Corp

Multiple Choice

DeMaris Corp. must calibrate its equipment before each production run. Each calibration costs $3,000. During 2010, DeMaris calibrated its equipment six times and produced 720,000 units of product: 120,000 of Product X in two production runs and 600,000 units of Product Y in four production runs. The calibration cost per unit for X and Y is
Product X   Product Y

A) $0.050   $0.020
B) $0.020   $0.050
C) $0.025   $0.025
D) $0.025   $0.005
E) $0.005   $0.025