Simmons Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 50,000 units per year is: $5.25 Direct Materials Direct labor Variable Overhead Fixed Overhead Variable selling and administrative expense Fixed selling and administrative expense Assume the company has 500 units of this product left over from last year that are vastly inferior to the current model. The units must be sold through regular channels at reduced prices. What cost figure is relevant for establishing a minimum selling price for these units? $1.70 None of the costs are relevant $12.40 4.30 1.15 1.25 1.70 1.45 $15.10 ect la ng c trib con nd v the om t? IV di Var tty ve ess an b. g to yea T b.

Simmons Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 50,000 units per year is: Assume the company has 500 units of this product left over from last year that are vastly inferior to the current model. The units must be sold through regular channels at reduced prices, What cost figure is relevant for establishing a minimum selling price for these units? $1.70 None of the costs are relevant $12.40 $15.10