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3 years ago

Tayler Company reported the following data.

1 answer:

3 0

Variable cost per unit is $23 , if the Tayler company has price per unit is $33, fixed cost is $5000 and Break even number of units= 500 units.

Explanation:

The given is,

Price per unit = $33

Fixed cos =$ 5000

Break even number of units = 500 units

Step:1

Total price = Price per unit × Break even number of units

= 33 × 500

= 16500

Total price = $16500

Step: 2

Total price = Fixed cost + Variable cost

16500 = 5000 + Variable cost

Variable cost = 16500 - 5000

= 11500

Variable cost = $11500

Step: 3

Variable cost per unit = $\frac{Variable cost}{Number of units}$

= $\frac{11500}{500}$

= 23

Variable cost per unit = $23

Result:

Variable cost per unit is $23.

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