The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit? Select one: A. $8.71 B. $7.41 C. $9.23 D. $1.29 E. The answer cannot be determined by the information given.

The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit? Select one: A. $8.71 B. $7.41 C. $9.23 D. $1.29 E. The answer cannot be determined by the information given.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit?

Select one:

$8.71

$7.41

$9.23

$1.29

The answer cannot be determined by the information given.

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