Answer:
The variable cost per unit is $15.6
Explanation:
In this question, we are asked to calculate the variable cost per unit assumed in the Parents for better schools analysis
Mathematically, the Breakeven point can be calculated through the following formula:
Breakeven point = Fixed Cost/( Selling price per unit - Variable cost per unit)
From the question, we can identify the following;
The selling price per unit is $20
The Breakeven point = 800 books
Fixed cost = Amount invested = $3,600
Substituting these in the above written formula;
800 = 3,600/(20 - VC)
0.2222 = 1/(20-VC)
0.222(20-VC) = 1
4.44 - 0.22VC = 1
3.44 = 0.22VC
VC = 3.44/0.22 = 15.64
This is $15.6 to the nearest cent dollar per unit