M & g tv and appliance store is a small company that has hired you to perform some management advisory services. the following information pertains to 2017 operations. sales (1,200 televisions) $1,200,000 cost of goods sold 540,000 store manager's salary per year 108,000 operating costs per year 216,000 advertising and promotion per year 24,000 commissions (3.0% of sales) 36,000 what was the variable cost per unit sold for 2017? a. $450 b. $770 c. $480 d. $30

C. $480

Explanation:

Answer is C.

Cost of Goods Sold = $540,000

Commission = $36,000

Total Variable Costs = Cost of Goods Sold + Commission

Total Variable Costs = $540,000 + $36,000

Total Variable Costs = $576,000

Number of units sold = 1,200

Variable Cost per unit = Total Variable Costs / Number of units sold

Variable Cost per unit = $576,000 / 1,200

Variable Cost per unit = $480

So, Variable Cost per unit sold for 2017 is $480

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