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A firm is reviewing a project with a labor cost of $18.90 per unit, raw materials cost of $21.63 a unit, and fixed costs of $8,000 a month. Sales are projected at 7.200 units total for the 3-year life of the project. What are the total variable costs per year? $106,300 $99,300 $97,272 $103,300 $109,300
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Number of units sold for 3 years life of project 7,200 Units Lets assume in those 3 years sold units are equal, then per year units sold Labor cost per unitS$18.90 Material cost per unit = $21 .63 Total fixed costs-$8,000 Total variable cost per unit - Labor cost + Material cost 7,200 Units/3 Years2,400 Units per year $18.90+$21.63 -S40.53 Per unit Total variable cost per yearNumber of units sold * Total variable cost per unit - 2,400 Units * $40.53 Per unit - $97,272

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