Garfield Corporation is considering building a new plant in European. It predicts sales at the new plant to be 60,000 units at $4.00?/unit. Below is a listing of estimated? expenses:Category Total Annual Expenses % of Annual Expense that are FixedMaterials $50,000 30%Labor $90,000 10%Overhead $60,000 20%Marketing/Admin $30,000 50%An european firm was contracted to sell the product and will receive a commission of 20?% of the sales price. No U. S. home office expenses will be allocated to the new facility. The unit variable cost for Garfield Corporation is:
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