Problem:
A firm is reviewing a project with labor cost of $7.20 per unit, raw materials cost of $23.45 a unit, and fixed costs of $16,000 a month. Sales are projected at 9,200 units over the 3-month life of the project.
Required:
Question: What are the total variable costs of the project?
- $281,980
- $265,980
- $215,740
- $297,980
- $148,990
Note: Please show guided help with steps and answer.