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Problem:

A project has earnings before interest and taxes of $14,600, fixed costs of $52,000, a selling price of $29 a unit, and a sales quantity of 16,000 units. All estimates are accurate within a plus/minus range of 3 percent. Depreciation is $12,000.

Required:

Question: What is the base case variable cost per unit?

  • $22.16
  • $23.84
  • $24.09
  • $24.23
  • $25.18

Note: Provide specific examples to support your answers.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91172349

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