Stahelin Valves produces a single component, a valve. The valve sells for $23 per unit. Fixed costs
Question:
Stahelin Valves produces a single component, a valve. The valve sells for $23 per unit. Fixed costs are $1,585,000 annually. Production and sales of 405,000 units annually result in profit before taxes of $1,250,000.
Required
What is the unit variable cost?
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23 per unit Using the profit equation Profit P V X FC 1250000 23 V 405000 1585000 V 6480000 4...View the full answer
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