The following estimates have been prepared for a project: Fixed costs: $36,000Depreciation: $24,000Sales price per unit: $4Accounting break-even: 40,000 units What must be the variable cost per unit? (Round your answer to 2 decimal places.)

The following estimates have been prepared for a project: Fixed costs: $36,000Depreciation: $24,000Sales price per unit: $4Accounting break-even: 40,000 units What must be the variable cost per unit? (Round your answer to 2 decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Question

The following estimates have been prepared for a project:

Fixed costs: $36,000
Depreciation: $24,000
Sales price per unit: $4
Accounting break-even: 40,000 units

What must be the variable cost per unit? (Round your answer to 2 decimal places.)

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