Answer:
Unitary variable cost= $1,200
Variable cost rate= 0.8
Explanation:
<u>First, we need to calculate the total variable cost:</u>
Total variable cost= sales - fixed cost - gross profit
Total variable cost= (5,000*1,500) - 1,000,000 - 500,000
Total variable cost= $6,000,000
<u>Now, the unitary variable cost:</u>
Unitary variable cost= total variable cost / number of units
Unitary variable cost= 6,000,000 / 5,000
Unitary variable cost= $1,200
Variable cost rate= 1,200 / 1,500= 0.8