Answer the following question(s)using the information below.Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations.
-What was the Jenny's Pottery Store variable cost per unit sold?
A)$30
B)$22
C)$44
D)$18
E)$4

Question

Answer the following question(s)using the information below.Jenny's Pottery Store is a small retail company that has the following information pertaining to current year operations. 
-What was the Jenny's Pottery Store variable cost per unit sold?
A)$30 
B)$22 
C)$44 
D)$18 
E)$4

Quizplus · Accepted Answer

Variable costs per unit sold can be calculated using the contribution margin per unit, which is the difference between the unit selling price and the unit variable cost. 
In this case, the contribution margin is $48 ($80 selling price minus $32 unit variable cost).

To find the unit variable cost, we can use the formula:
Unit variable cost = Total variable costs / Number of units sold

From the information given, we know that the total variable costs were $22,440 and the number of units sold was 1,020:
Unit variable cost = $22,440 / 1,020 = $22

Therefore, the best choice is B, with a variable cost per unit sold of $22.

Answer the Following Question(s)using the Information Below