Problem:
A firm is reviewing a project with labor cost of $6.80 per unit, raw materials cost of $23.05 a unit, and fixed costs of $14,000 a month. Sales are projected at 8,800 units over the 3-month life of the project.
Required:
Question: What are the total variable costs of the project?
- $276,680
- $262,680
- $138,340
- $248,680
- $202,840
Note: Provide support for rationale.