## Answers

Correct answer---------$8.07

Working

Variable cost (3.40 x 150000) | $ 5,10,000.00 |

Fixed cost | $ 7,00,000.00 |

Total cost | $ 12,10,000.00 |

Divided by Units | 150000 |

Cost per unit | $ 8.07 |

Fixed cost remains same in totality.

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