Axelrod Company Has Fixed Costs of $250,000

Multiple Choice

Axelrod Company has fixed costs of $250,000. Highest production volume this year was in January when there were 100,000 units produced and total costs of $550,000. How much is the variable cost per unit? (Please round all amounts to the nearest cent.)

A) $3.00
B) $5.50
C) $2.50
D) $3.50