The X Company produced in one month 20,000 units at a total variable cost of $16,000. If 25,000 units are produced in the following month, and assuming no other changes, the variable costs would be:
$16,000 total
$0.64 per unit
$24,000 total
$1.25 per unit
none of the above
The solutions gives None of the above. Can someone explain me why it couldn't be $1.25 unit instead?