KND ENTERPRISES PRODUCES A SINGLE PART FOR SALE. THE PART SELLS FOR $19 PER UNIT. FIXED COSTS ARE $1,420,000 ANNUALLY. PRODUCTION AND SALES OF 640,000 UNITS ANNUALLY RESULT IN PROFIT BEFORE TAXES OF $2,350,000. WHAT IS THE IS THE UNIT VARIABLE COST?
KND ENTERPRISES PRODUCES A SINGLE PART FOR SALE. THE PART SELLS FOR $19 PER UNIT. FIXED COSTS ARE $1,420,000 ANNUALLY. PRODUCTION AND SALES OF 640,000 UNITS ANNUALLY RESULT IN PROFIT BEFORE TAXES OF $2,350,000. WHAT IS THE IS THE UNIT VARIABLE COST?
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Question
What is the unit variable cost?
Transcribed Image Text:KND ENTERPRISES PRODUCES A
SINGLE PART FOR SALE. THE PART
SELLS FOR $19 PER UNIT. FIXED
COSTS ARE $1,420,000 ANNUALLY.
PRODUCTION
AND
SALES OF
640,000 UNITS ANNUALLY RESULT IN
PROFIT
BEFORE
TAXES
OF
$2,350,000. WHAT IS THE
IS THE
UNIT
VARIABLE COST?
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