Penny's TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 20X2 operations. Sales (2,000 televisions) $900,000; Cost of goods sold $400,000; Store manager's salary per year $70,000; Operating costs per year $157,000; Advertising and promotion per year $15,000; Commissions (4% of sales) $36,000. What was the variable cost per unit sold for 20X2?

a. $227,000

b. $242,000

c. $436,000

d. $678,000 

Answer rating: 100% (QA)

Total Fixed Cost 70000 Stor... View the full answer