A project has earnings before interest and taxes of $6,355,fixed costs of $11,600,a selling price of $12 a unit,and a sales quantity of 10,500 units.Depreciation is $2,200.What is the variable cost per unit?

Name: A project has earnings before interest and taxes of $6,355,fixed costs of $11,600,a selling price of $12 a unit,and a sales quantity of 10,500 units.Depreciation is $2,200.What is the variable cost per unit?
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Question

Quizplus · Accepted Answer

EBIT = $6,355 = [10,500 × ($12 - VC)] - $11,600 - 2,200VC = $10.08

A Project Has Earnings Before Interest and Taxes of $6,355,fixed