Bradley Components produces a single product for sale. The part sells for $18.75 per unit. Fixed costs are $1,750,000 annually. Production and sales of 720,000 units annually result in a profit before taxes of $2,800,000. What is the unit variable cost?

Bradley Components produces a single product for sale. The part sells for $18.75 per unit. Fixed costs are $1,750,000 annually. Production and sales of 720,000 units annually result in a profit before taxes of $2,800,000. What is the unit variable cost?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Question

Please provide the correct answer to this general accounting problem using valid calculations.

Bradley Components produces a single product for sale. The part sells
for $18.75 per unit. Fixed costs are $1,750,000 annually. Production
and sales of 720,000 units annually result in a profit before taxes of
$2,800,000.
What is the unit variable cost?

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What is the unit variable cost?
What is the unit variable cost?
What is the unit variable cost ?
What is the unit variable cost ?