bell designs produces a line of satchels that sell for $125.00. their weekly fixed costs are $2,670.00. if…

bell designs produces a line of satchels that sell for $125.00. their weekly fixed costs are $2,670.00. if they produced 575 satchels last week at a total cost of $24,520.00, what is the unit variable cost of production? enter the unit variable cost in the answer box below. $0.00 round to the nearest cent

bell designs produces a line of satchels that sell for $125.00. their weekly fixed costs are $2,670.00. if they produced 575 satchels last week at a total cost of $24,520.00, what is the unit variable cost of production? enter the unit variable cost in the answer box below. $0.00 round to the nearest cent

Answer

Explanation:

Step1: Find total variable cost

Total cost = Fixed cost + Total variable cost. So, Total variable cost = Total cost - Fixed cost. $24520 - 2670=21850$

Step2: Calculate unit variable cost

Unit variable cost = Total variable cost / Number of units produced. $\frac{21850}{575}\approx38$

Answer:

$38.00$