A firm is reviewing a project with labor cost of $9.40 per unit, raw materials cost of $25.65 a unit, and fixed costs of $15,000 a month. Sales are projected at 11,400 units over the 3-month life of the project. What are the total variable costs of the project? Solution Variable Costs => (9.40 + 25.65) * 11400 => $ 399570 The total variable costs of the project => $399570.

1. A firm is reviewing a project with labor cost of $9.40 per unit, raw materials cost of $25.65 a
unit, and fixed costs of $15,000 a month. Sales are projected at 11,400 units over the 3-month
life of the project. What are the total variable costs of the project?
Solution
Variable Costs => (9.40 + 25.65) * 11400
=> $ 399570
The total variable costs of the project => $399570