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    Reducing variable production costs

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    A company estimates that spending $29,500 in employee training will result in reducing variable production costs by 6%. Production and sales amount to 4,400 units. Selling price is $200 per unit and total product cost is $150 - 60% of which is variable cost. What is the advantage / disadvantage of this action?

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    https://brainmass.com/business/accounting/174690

    Solution Preview

    Units sold = 4400

    Selling Price = $200

    Cost = $150

    Variable cost = 60% x 150 = $90

    Fixed cost = 150 - 90 = ...

    $2.19

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