Homework SourseA firm is reviewing a project with labor cost of 940 per uni
A firm is reviewing a project with labor cost of $9.40 per unit, raw materials cost of $25.65 a unit, and fixed costs of $15,000 a month. Sales are projected at 11,400 units over the 3-month life of the project. What are the total variable costs of the project?
| A firm is reviewing a project with labor cost of $9.40 per unit, raw materials cost of $25.65 a unit, and fixed costs of $15,000 a month. Sales are projected at 11,400 units over the 3-month life of the project. What are the total variable costs of the project? |
Solution
TOTAL VARIABLE COST = (25.65+9.4)*11400
=$399570
