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Exhibit 5-7 Last month, Ellison Industries sold its product for $100 per unit. Fixed production costs...

Exhibit 5-7 Last month, Ellison Industries sold its product for $100 per unit. Fixed production costs were $50,000, and variable production costs amounted to $21 per unit. Fixed selling and administrative costs totaled $20,000, and variable selling and administrative costs amount to $3.00 per unit. Dawson produced and sold 6,000 units last month. Refer to Exhibit 5-7. Which of the following amounts represents total selling and administrative costs?

Group of answer choices

$18,000

$38,000

$20,000

$386,000

None of the answer choices is correct.

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Homework Answers

Answer #1

Total selling and administrative expenses

= Variable (3*6000) + Fixed 20,000

= 18,000+20,000

= 38,000

Option B is the answer
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