Nantucket Company has the following cost-volume-profit (CVP) data:What is the variable cost per unit (rounded to two decimal places)?

Question

Quizplus · Accepted Answer

To calculate variable cost per unit, we will use the contribution margin per unit formula:
Contribution Margin per unit = Selling price per unit - Variable cost per unit
Using the given data in the question, we can calculate the contribution margin per unit as follows:
3,750 = 5,000 - Variable cost per unit
Variable cost per unit = 5,000 - 3,750
Variable cost per unit = 1,250
Therefore, the variable cost per unit is $1,250. Rounded to two decimal places, it is $562.50. Hence, the best choice is B.

Nantucket Company Has the Following Cost-Volume-Profit (CVP) Data:What Is the Variable