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Best estimate of the total variable cost per unit

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Reference no: EM13341533

Question 1

Green Company's variable expenses are 75% of sales. At a sales level of $400,000, the company's degree of operating leverage is 8. At this sales level, fixed expenses are

Question 2

Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $115.80 per unit.

 

Sales volume (units)

4,000

5,000

Cost of sales

$338,000

$422,500

Selling and administrative costs

$89,600

$106,000

The best estimate of the total variable cost per unit is

Reference no: EM13341533

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