Question

Carter Co. sells two products, Arks and Bins. Last year, Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are: Unit Selling Price $120 Unit Variable Cost $80 60 Product Unit Contribution Arks Bins $40 20 80 What was Carter Co.'s variable cost of

a. $70
b. $64
C. $60
d. $140

Answer 1

Variable cost per unit = $64 per unit

so correct option is b. $64

Step-by-step explanation:

given data

sold Arks = 14,000 units

sold Bins = 56,000 units

products unit selling price unit variable cost unit contibution

Arks $120 $80 $40

Bins 80 60 20

to find out

Carter Co.'s variable cost

solution

we get here Variable cost per unit find as

Variable cost per unit = ( Arks unit variable cost × sold Arks + Bins unit variable cost × sold Bins ) ÷ total sales

Variable cost per unit =
`((80*14000)+(60*56000))/(14000+56000)`

Variable cost per unit = $64 per unit

so correct option is b. $64