If a manufacturing company incurs rent costs of $12,500 per month. the company manufactured 250,000 units in may and 300,000 units in june. the cost per unit in may and june, respectively, is: $0.05 and $0.04.
Using this formula to find Cost per units
Cost per units = Rent amount incurred / Number of units
Let plug in the formula
Cost per units for May
Cost per units =$12,500/ 250,000
Cost per units = $0.05
Cost per units for June
Cost per units =$12,500/ 300,000
Cost per units = $0.04
Therefore the cost per units is $0.05 and $0.04.
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