Base case variable cost per unit, Accounting Basics

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Base case variable cost per unit

Problem:

A project has earnings before interest and taxes of $14,600, fixed costs of $52,000, a selling price of $29 a unit, and a sales quantity of 16,000 units. All estimates are accurate within a plus/minus range of 3 percent. Depreciation is $12,000.

Requirement:

Question: What is the base case variable cost per unit?

$22.16
$23.84
$24.09
$24.23
$25.18

Note: Solve the problem and show all work.

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Accounting Basics: Base case variable cost per unit

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