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A company is considering a project with a breakeven point of 18,000 units. The selling price is $22 a unit and the amount of fixed costs is $270,000. What is the variable cost per unit?

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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A company is considering a project with a breakeven point of 18,000 units. The selling price is $22 a unit and the amount of fixed costs is $270,000. What is the variable cost per unit?

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