The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit? Select one: A. $8.71 B. $7.41 C. $9.23 D. $1.29 E. The answer cannot be determined by the information given.

Principles of Accounting Volume 2
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Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...
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The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit?

Select one:
A.
$8.71
B.
$7.41
C.
$9.23
D.
$1.29
E.
The answer cannot be determined by the information given.
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