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Estimating Variable Costs: Algebra Approach Total production costs for Gallop, Inc., are budgeted at $230,000 for 50,000 units of budgeted output and at $280,000 for

Estimating Variable Costs: Algebra Approach

Total production costs for Gallop, Inc., are budgeted at $230,000 for 50,000 units of budgeted output and at $280,000 for 60,000 units of budgeted output. Because of the need for additional facilities, budgeted fixed costs for 60,000 units are 25% more than budgeted fixed costs for 50,000 units. How much is Gallop's budgeted variable cost per unit of output?

A brief walkthrough on how to arrive at the variable cost per unit of output would be appreciated! Don't quite know how to get started.

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