Question
Paolucci Corporation's relevant range of activity is 7,500 units to 15,500 units. When it produces and sells 11,500 units, its average costs per unit are
Paolucci Corporation's relevant range of activity is 7,500 units to 15,500 units. When it produces and sells 11,500 units, its average costs per unit are as follows:
Average Cost per Unit Direct materials $ 6.95 Direct labor $ 3.85 Variable manufacturing overhead $ 1.85 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 1.15 Fixed administrative expense $ 0.85 Sales commissions $ 1.10 Variable administrative expense $ 0.75
If 10,500 units are sold, the variable cost per unit sold is closest to:
Multiple Choice
$15.65 $19.50 $12.65 $14.50
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