The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 4 years. The c
1 answer:
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Answer:
Variable Cost per unit = $9 per unit
so correct option is C. Variable expense per unit is $9
Explanation:
given data
sales = 25,000 units
Company reported sale = $750,000
net operating income = $25,000
total contribution margin = $500000
top find out
Based on information the company reported
solution
we know that here contribution at the break even point is 500000
so that the fixed cost will be 500000 because break even point
fixed cost = contribution and net income is 0
by this data we find the variable expense that is
variable expenses = Company reported Sales - Fixed Cost - Net Operating Income ..........................1
variable expenses = $750,000 - $500000 - $25000
variable expenses = $225000
and Variable Cost per unit =
Variable Cost per unit = $9 per unit
so correct option is C. Variable expense per unit is $9