A firm is reviewing a project with labor cost of $9.40 per unit, raw materials c

Question

A firm is reviewing a project with labor cost of $9.40 per unit, raw materials cost of $25.65 a unit, and fixed costs of $15,000 a month. Sales are projected at 11,400 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 $9.40 per unit, raw materials cost of $25.65 a unit, and fixed costs of $15,000 a month. Sales are projected at 11,400 units over the 3-month life of the project. What are the total variable costs of the project?

Explanation / Answer

TOTAL VARIABLE COST = (25.65+9.4)*11400

=$399570

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