Gumbo Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $138.80 per unit.

Sales volume (units)	6,000	7,000
Cost of sales	$369,000	$430,500
Selling and administrative costs	$407,400	$418,600

the cost of sales is a variable cost and selling and administrative costs are mixed costs.

Per unit cost of sales=$61.5

The variable cost per unit for selling and administrative costs which are mixed cost is $11.20.

True

False

2 points

QUESTION 8

4. Gumbo Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $138.80 per unit.

Sales volume (units)	6,000	7,000
Cost of sales	$369,000	$430,500
Selling and administrative costs	$407,400	$418,600

the "cost of sales" is a variable cost and "selling and administrative costs" are mixed costs.

Per unit cost of sales=61.5. and per unit portion of "selling and administrative costs" equal $11.20.

The cost formula for selling and administrative costs will be Y=340,200 +11.20(X)

True

False