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Paolucci Corporation's relevant range of activity is 4,500 units to 10,500 units. When it produces and sells 7,500 units, its average costs per unit are

Paolucci Corporation's relevant range of activity is 4,500 units to 10,500 units. When it produces and sells 7,500 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials $ 6.45
Direct labor $ 3.35
Variable manufacturing overhead $ 1.35
Fixed manufacturing overhead $ 3.80
Fixed selling expense $ 1.30
Fixed administrative expense $ 0.85
Sales commissions $ 1.25
Variable administrative expense $ 0.75

If 6,500 units are sold, the variable cost per unit sold is closest to:

  • $19.10

  • $11.15

  • $14.95

  • $13.15

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