Brault Corporation has provided the following information: If 10,000 units are sold, the variable cost per unit sold is closest to:
A)$22.75
B)$11.95
C)$13.50
D)$28.80

Question

Brault Corporation has provided the following information:   If 10,000 units are sold, the variable cost per unit sold is closest to:
A)$22.75 
B)$11.95 
C)$13.50 
D)$28.80

Quizplus · Accepted Answer

The given information does not directly give the variable cost per unit sold. However, we can calculate it using the contribution margin per unit and the selling price per unit.

Contribution margin per unit = Selling price per unit - Variable cost per unit

From the given information, we can calculate the contribution margin per unit as:

Contribution margin per unit = $37.50 - $24.00 = $13.50

Since the contribution margin per unit is the difference between the selling price and variable cost per unit, we can rearrange the above equation to calculate the variable cost per unit as:

Variable cost per unit = Selling price per unit - Contribution margin per unit

Variable cost per unit = $37.50 - $13.50 = $24.00

Therefore, the variable cost per unit sold is closest to $24.00.

Brault Corporation Has Provided the Following Information: If