Question

41. Gambino Corporation is a whole that sells a single product Management provided the following cost date for two levels of
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Answer #1

Solution:

Cost of sales is a variable cost at same is vary in proportion to sales.

Variable selling and administrative cost per unit = ($443,200 - $431,300) / (8100 - 7100) = $11.90 per unit

Fixed selling and administrative cost = $443,200 - (8100*$11.90) = $346,810

Hence first option is correct.

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