Carter co. sells two products, arks and bins. last year, carter sold 14,000 units of arks and 56,000 units of bins. related data are: unit selling price $120 unit variable cost $80 60 product unit contribution arks bins $40 20 80 what was carter co.'s variable cost of

a. $70
b. $64
c. $60
d. $140

Variable cost per unit = $64 per unit

so correct option is b. $64

Explanation:

given data

sold Arks = 14,000 units

sold Bins = 56,000 units

products       unit selling price    unit variable cost       unit contibution            

Arks               $120                                $80                              $40

Bins                   80                                   60                                20

to find out

Carter Co.'s variable cost

solution

we get here Variable cost per unit find as

Variable cost per unit = ( Arks unit variable cost ×  sold Arks + Bins unit variable cost ×  sold Bins )  ÷ total sales

Variable cost per unit =

Variable cost per unit = $64 per unit

so correct option is b. $64

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: