Falcon Technologies manufactures a single component for sale. The component sells for $18 per unit. Fixed costs are $1,500,000 annually. Production and sales of 800,000 units annually result in a profit before taxes of $2,800,000. What is the unit variable cost?

Falcon Technologies manufactures a single component for sale. The component sells for $18 per unit. Fixed costs are $1,500,000 annually. Production and sales of 800,000 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 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...

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Question

What is the unit variable cost on these general accounting question?

Falcon Technologies manufactures a single
component for sale. The component sells for $18 per
unit. Fixed costs are $1,500,000 annually.
Production and sales of 800,000 units annually result
in a profit before taxes of $2,800,000. What is the
unit variable cost?

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