What is the variable cost for product C?

The following financial information is available for the analysis:
• Current sales revenue for Product A: R3,000,000
• Current sales revenue for Product B: R1,600,000
• Expected sales revenue for Product C (first year): R2,000,000
• Research and development costs for Product C: R600,000
• Production Equipment Costs for Product C: R1,300,000
• Marketing costs for Product C: R400,000
• Expected variable costs for Product A: 80% of sales revenue
• Expected variable costs for Product B: 61% of sales revenue
• Expected variable costs for Product C: 66% of sales revenue
• Fixed costs (overheads) for the entire business: R800,000
• Investment cost for Product A = R2,000,000
• Investment cost for Product B = R800,000

Answer rating: 100% (QA)

The variable cost for a product is typically calculated as a pe... View the full answer