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Treanor Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017 ?, it budgeted to manufacture and sell 3,300 tires at a variable cost of per $80 tire and total fixed costs of $54,000. The budgeted selling price was$109 per tire. Actual results in August 2017 were 3,100 tires manufactured and sold at a selling price of$110 per tire. The actual total variable costs were$269,700 ?, and the actual total fixed costs were $50,500.
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Total costs, both fixed and variable, are $500,000 when 40,000 units are produced. It sold 35,000 units during the year. Calculate the variable cost per unit.
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