Starfun Toys, Inc. Cost of Materials Number of toys produced Total cost of materials 60,000 $18,000 120,000 36,000 150,000 45,000 What is the materials cost per unit of output? a.$0.50 b.$0.30 c.$0.20

B $0.30

Explanation:

There are three levels of output of materials, to determine the cost per unit of material, one needs to divide the quantity of material by the cost in $ of the material. This is further illustrated below:

$18,000/60000units=$0.30

$36000/120000units=$0.30

$45000/150000units=$.30