Kennedy Co.sells two products, Arks and Bins.Last year, Kennedy sold 32,000 units of Arks and 18,000 units of Bins.Related data are: ?? $\begin{array}{cccc}
& \text { Unit } & \text { Unit } & \text { Unit } \
& \text { Selling Variable } & \text { Contribution } \
\text { Product } & \text { Price } & \text { Cost } & \text { Margin } \
\hline\text { Arks } & \$ 80 & \$ 20 & \$ 60 \
\text { Bins } & 120 & 40 & 80
\end{array}$ ?
What was Kennedy's overall product's unit variable cost?

Question

Kennedy Co.sells two products, Arks and Bins.Last year, Kennedy sold 32,000 units of Arks and 18,000 units of Bins.Related data are: ?? $\begin{array}{cccc} 
& \text { Unit } & \text { Unit } & \text { Unit } \
& \text { Selling Variable } & \text { Contribution } \
\text { Product } & \text { Price } & \text { Cost } & \text { Margin } \
\hline\text { Arks } & \$ 80 & \$ 20 & \$ 60 \
\text { Bins } & 120 & 40 & 80
\end{array}$ ?
What was Kennedy's overall product's unit variable cost?

Quizplus · Accepted Answer

To calculate the overall product's unit variable cost, we first determine the total variable costs for each product and then divide by the total units sold. For Arks: $32,000 \text{ units} \times \$20 = \$640,000$. For Bins: $18,000 \text{ units} \times \$40 = \$720,000$. Total variable cost = \$640,000 + \$720,000 = \$1,360,000. Total units sold = 32,000 + 18,000 = 50,000. Overall unit variable cost = $\frac{\$1,360,000}{50,000} = \$27.20$.

Kennedy Co ? What Was Kennedy's Overall Product's Unit Variable Cost? A)

Kennedy Co ?
What Was Kennedy's Overall Product's Unit Variable Cost?
A)