Fortran Industries produces the electrical elements for the stoves. Each item sells for $20, and the company sells about 2,000,000 each year. The cost per unit is as follows:

 What is the variable cost per unit for each item?

Transcribed Image Text:

Direct material Workforce Other costs Variable manufacturing Fixed manufacturing Variable Distribution Fixed distribution $4.00 $3.00 $2.50 $5.00 $1.50 $1.00 Direct material Workforce Other costs Variable manufacturing Fixed manufacturing Variable Distribution Fixed distribution $4.00 $3.00 $2.50 $5.00 $1.50 $1.00

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The variable cost per unit for each item is the sum of the var... View the full answer