A firm is reviewing a project with labor cost of $9.20 per unit, raw materials c

Question

A firm is reviewing a project with labor cost of $9.20 per unit, raw materials cost of $25.45 a unit, and fixed costs of $14,000 a month. Sales are projected at 11,200 units over the 3-month life of the project. What are the total variable costs of the project?

A firm is reviewing a project with labor cost of $9.20 per unit, raw materials cost of $25.45 a unit, and fixed costs of $14,000 a month. Sales are projected at 11,200 units over the 3-month life of the project. What are the total variable costs of the project?

Explanation / Answer

=11200*(9.2 + 25.45) = 388080

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