A project has earnings before interest and taxes of $14,600,fixed costs of $52,000,a selling price of $29 a unit,and a sales quantity of 16,000 units.All estimates are accurate within a plus/minus range of 3 percent.Depreciation is $12,000.What is the base case variable cost per unit?
A)$22.16
B)$23.84
C)$24.09
D)$24.23
E)$25.18

Question

Quizplus · Accepted Answer

[16,000 × ($29 - v)] - $52,000 - $12,000 = $14,600; v = $24.09

A Project Has Earnings Before Interest and Taxes of $14,600,fixed