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Sales (10000 * 12) = 120000

Less: Fixed Cost = 40000

Less: Depreciation = 8500

Less: Variable Cost = 65000 (Balancing Figure)

---- PBIT = 6500

Variable Cost per unit = 65000/10000 = 6.5 per unit

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Q: A project has earnings before interest and taxes of 6500 fixed costs of 40000 a selling price of 12 a unit and a sales quantity of 10000 units Depreciation is 8500 What is the variable cost per unit?
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