You are More than a Grade (YMG) manufactured 10,000 units in the previous year. An excerpt from their financial statement has been provided below: o Sales Revenue $1,000,000 o Cost of Goods Sold ($400,000) o SG&A expenses ($100,000) o Operating income $500,000 Of the amounts reported on the financial statements, 20% of the cost of goods sold and 60% of the SG&A expenses are variable costs. What is the per unit variable cost? $5.00 unit variable cost $6.00 unit variable cost $14.00 unit variable cost $4.00 unit variable cost
You are More than a Grade (YMG) manufactured 10,000 units in the previous year. An excerpt from their financial statement has been provided below: o Sales Revenue $1,000,000 o Cost of Goods Sold ($400,000) o SG&A expenses ($100,000) o Operating income $500,000 Of the amounts reported on the financial statements, 20% of the cost of goods sold and 60% of the SG&A expenses are variable costs. What is the per unit variable cost? $5.00 unit variable cost $6.00 unit variable cost $14.00 unit variable cost $4.00 unit variable cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8. You are More than a Grade (YMG) manufactured 10,000 units in the previous year. An excerpt from their financial statement has been provided below:
o Sales Revenue $1,000,000
o Cost of Goods Sold ($400,000)
o SG&A expenses ($100,000)
o Operating income $500,000
Of the amounts reported on the financial statements, 20% of the cost of goods sold and 60% of the SG&A expenses are variable costs. What is the per unit variable cost?
$5.00 unit variable cost
$6.00 unit variable cost
$14.00 unit variable cost
$4.00 unit variable cost
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