Answer:
B. $9.33 per canoe
Explanation:
Variable Cost Per Unit = (Highest Activity Cost – Lowest Activity Cost) / (Highest Activity Units – Lowest Activity Units)
Highest Activity Cost = 2000
Lowest Activity Cost = 1700
Highest Activity Units = 7800
Lowest Activity Units = 5000
Variable Cost Per Unit = ($7,800 – $5,000) / (2000 – 1700)
Variable Cost Per Unit = ($2,800) / (300)
Variable Cost Per Unit = $9.33
