Problem:
A firm is reviewing a project with labor cost of $9.40 per unit, raw materials cost of $25.65 a unit, and fixed costs of $15,000 a month. Sales are projected at 11,400 units over the 3-month life of the project.
Required:
Question: What are the total variable costs of the project?
- $292,410
- $207,285
- $414,570
- $399,570
- $384,570
Note: Please show how you came up with the solution.