Variable cost per unit is $23 , if the Tayler company has price per unit is $33, fixed cost is $5000 and Break even number of units= 500 units.
Explanation:
The given is,
Price per unit = $33
Fixed cos =$ 5000
Break even number of units = 500 units
Step:1
Total price = Price per unit × Break even number of units
= 33 × 500
= 16500
Total price = $16500
Step: 2
Total price = Fixed cost + Variable cost
16500 = 5000 + Variable cost
Variable cost = 16500 - 5000
= 11500
Variable cost = $11500
Step: 3
Variable cost per unit = [tex]\frac{Variable cost}{Number of units}[/tex]
= [tex]\frac{11500}{500}[/tex]
= 23
Variable cost per unit = $23
Result:
Variable cost per unit is $23.