Use the information below to answer the following question(s) .
Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant to be 100,000 units at $4.00/unit. Below is a listing of estimated expenses:
A European firm was contracted to sell the product and will receive a commission of 13% of the sales price. No U.S. home office expenses will be allocated to the new facility.
-The variable cost per unit for Veron Corporation is
A) $1.28.
B) $1.62.
C) $0.76.
D) $0.86.
Correct Answer:
Verified
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