Answer the following question(s) using the information below.
Penny's TV and Appliance Store is a small company that has the following information pertaining to 2012 operations.

-What was the variable cost per unit sold for 2012?
A) $18
B) $235
C) $339
D) $200
E) $218

Question

Answer the following question(s) using the information below.
Penny's TV and Appliance Store is a small company that has the following information pertaining to 2012 operations.
 
-What was the variable cost per unit sold for 2012?
A) $18 
B) $235 
C) $339 
D) $200 
E) $218

Quizplus · Accepted Answer

To find the variable cost per unit sold, we need to use the formula:
Variable cost per unit sold = (Total variable costs incurred in 2012) / (Total units sold in 2012)
From the information given, we know:
Total variable costs incurred in 2012 = $3,895,170
Total units sold in 2012 = 17,850

Therefore, the variable cost per unit sold = $3,895,170 / 17,850 = $218. 
Thus, the best choice is E.

Answer the Following Question(s) Using the Information Below