Question: Estimate average cost per unit as per life cycle costing
Period
Estimated
production
(units)
Fixed cost
per annum
(AED)
Variable cost
@ AED 2
(AED)
Total cost
(AED)
Cost per unit
(AED)
1
12,000
60,000
24,000
84,000
7.00
2
18,000
60,000
36,000
96,000
5.33
3
80,000
60,000
1,60,000
2,20,000
2.75
4
25,000
60,000
50,000
1,10,000
4.40
5
8,000
60,000
16,000
76,000
9.50