South Coast Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations. Sales (5,500 microwave ovens) $5,500,000 Cost of goods sold 962,500 Store manager's salary per year 150,000 Operating costs per year 220,000 Advertising and promotion per year 18,960 Commissions (3.2% of sales) 176,000 What was the variable cost per unit sold for 2017?
South Coast Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations. Sales (5,500 microwave ovens) $5,500,000 Cost of goods sold 962,500 Store manager's salary per year 150,000 Operating costs per year 220,000 Advertising and promotion per year 18,960 Commissions (3.2% of sales) 176,000 What was the variable cost per unit sold for 2017?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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South Coast Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations.
|
Sales (5,500 microwave ovens)
|
$5,500,000
|
|
|
Cost of goods sold
|
962,500
|
|
|
Store manager's salary per year
|
150,000
|
|
|
Operating costs per year
|
220,000
|
|
|
Advertising and promotion per year
|
18,960
|
|
|
Commissions (3.2% of sales)
|
176,000
|
|
What was the variable cost per unit sold for 2017?
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