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Variable cost

This topic has 2 replies, 3 voices, and was last updated 7 years ago by namah1.

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March 9, 2018 at 1:45 pm #441763
veronikamikh
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I cannot get a correct answer, please could you help me:
Budgeted sales of company’s single product in a period are 20,000 units producing a total contribution of $180,000 at a selling price of $24 p.unit. Fixed cost are $6 per unit based on the budgeted sales quantity.
What is the budgeted variable cost per unit?
Thank you in advance
March 9, 2018 at 6:47 pm #441876
secondstar
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Budgeted Sales = 20,000 units
Contribution from these units = $180,000
Contribution/unit = $180,000/20,000 = $9
V.C/unit = Selling Price – Contribution/unit = $24-$9 = $15
March 10, 2018 at 12:26 pm #442050
namah1
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Contribution= sales- variable costs (marginal cost)
180000= 480000 (24×20000)- variable cost
480000-180000=300000/20000=15/unit
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