Question
A project has base-case earnings before interest and taxes of $11,444, fixed costs of $38,000, a selling price of $26 a unit, and a sales
A project has base-case earnings before interest and taxes of $11,444, fixed costs of $38,000, a selling price of $26 a unit, and a sales quantity of 14,200 units. All estimates are accurate within a plus/minus range of2 percent. Depreciation is $11,900. What is the base-case variable cost per unit?
$22.16
$23.84
$21.68
$22.23
$20.18
Please show work?
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
