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Question(s) / Instruction(s):

A company that produces and sells a single product has provided the following volume and average cost data for two accounting periods:
Level of activity (units)         1,000     2,000
Direct materials             $4.00     $4.00
Direct labor                 $3.00     $3.00
Manufacturing overhead             $3.50     $2.50
General, selling and admin expenses     $1.00     $0.50
The best estimates of the total fixed cost and variable cost per unit are closest to:
a)    $2,000 fixed; $1.50 variable
b)    $2,000 fixed; $7.00 variable
c)    $3,000 Fixed; $7.00 variable
d)    $3,000 fixed; $8.50 variable

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