Leather Company sold 20,000 units,had variable costs of $12 per unit,fixed costs of $100,000,and profits of $60,000.What is the selling price per unit?

Question

Quizplus · Accepted Answer

To find the selling price per unit, use the profit equation: Profit = (Selling Price - Variable Cost) * Quantity - Fixed Costs. Plug in the values: $60,000 = (Selling Price - $12) * 20,000 - $100,000. Solving for Selling Price gives $20 per unit.

Leather Company Sold 20,000 Units,had Variable Costs of $12 Per