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12 July, 11:54

Herbie inc., a firm manufacturing sandwich makers, has fixed costs of $250,000, variable costs of $20 per unit of output, and expected unit sales of 50,000 units. what is the unit cost of a sandwich maker manufactured by herbie?

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  1. 12 July, 12:16
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    250000/50000 = $5 per unit

    $ 5 per unit + $20 per unit

    Unit cost = $25 per unit
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