Tayler Company reported the following data.

Price per unit = $33

Fixed cost = $5,000

Breakeven number of units = 500 units

Given these data, compute the VARIABLE COST PER UNIT.

Group of answer choices

$33 per unit

$15 per unit

$28 per unit

$42 per unit

$23 per unit

Variable cost per unit is $23 , if the Tayler company has price per unit is $33, fixed cost is $5000 and Break even number of units= 500 units.

Explanation:

The given is,

           Price per unit = $33

           Fixed cos =$ 5000

           Break even number of units = 500 units

Step:1

          Total price = Price per unit × Break even number of units

                             = 33 × 500

                             = 16500

        Total price = $16500

Step: 2

                Total price = Fixed cost +  Variable cost

                       16500 = 5000 + Variable cost

           Variable cost = 16500 - 5000

                                  = 11500

          Variable cost = $11500

Step: 3

       Variable cost per unit =

                                            =

                                            = 23

     Variable cost per unit = $23  

Result:

      Variable cost per unit is $23.

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