Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations.

-What was the Penny's TV variable cost per unit sold?
A) $235
B) $339
C) $200
D) $218

Question

Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations.
 
-What was the Penny's TV variable cost per unit sold?
A) $235 
B) $339 
C) $200 
D) $218

Quizplus · Accepted Answer

To calculate the variable cost per unit sold, we need to use the formula:

Variable cost per unit = (Total variable costs) / (Total units sold)

From the information given, we know that Penny's TV had a total variable cost of $436,800 and sold 2,000 units.

Variable cost per unit = $436,800 / 2,000 units = $218 per unit sold.

Therefore, the answer is D.

Penny's TV and Appliance Store Is a Small Company That