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At a sales volume of 40,000 units, Lonnie Company's total fixed costs are R40,000 and total variable costs are R60,000. The relevant range is 30,000 to 50,000 units.
Problem 1: If Lonnie were to sell 50,000 units, the total expected cost per unit would be:
Option 1: R2.30.Option 2: R2.20.Option 3: R2.50.Option 4: R2.00.
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