Paolucci Corporation's relevant range of activity is 3,600 units to 9,000 units. When it produces and...
Paolucci Corporation's relevant range of activity is 3,600 units to 9,000 units. When it produces and sells 6,300 units, its average costs per unit are as follows:
Average
Cost per UnitDirect materials$6.30 Direct labor$3.20 Variable manufacturing overhead$1.20 Fixed manufacturing overhead$3.30 Fixed selling expense$1.15 Fixed administrative expense$0.70 Sales commissions$1.10 Variable administrative expense$0.60
If 5,300 units are sold, the variable cost per unit sold is closest to:
Multiple Choice
- $17.55
- $10.70
- $14.00
- $12.40
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