A project has earnings before interest and taxes of $7,318,fixed costs of $13,480,a selling price of $14 a unit,and a sales quantity of 7,500 units.Depreciation is $2,200.What is the variable cost per unit?

Name: A project has earnings before interest and taxes of $7,318,fixed costs of $13,480,a selling price of $14 a unit,and a sales quantity of 7,500 units.Depreciation is $2,200.What is the variable cost per unit?
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Question

Quizplus · Accepted Answer

$7,318 = [7,500 × ($14 - Variable costs)] - $13,480 - $2,200
Variable costs = $10.93

A Project Has Earnings Before Interest and Taxes of $7,318,fixed