Paolucci Corporation's relevant range of activity is 9,000 units to 18,000 units. When it produces and sells
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Question:
Paolucci Corporation's relevant range of activity is 9,000 units to 18,000 units. When it produces and sells 13,500 units, its average costs per unit are as follows:
Average | |||
Direct materials | $ | 7.20 | |
Direct labor | $ | 4.10 | |
Variable manufacturing overhead | $ | 2.10 | |
Fixed manufacturing overhead | $ | 3.90 | |
Fixed selling expense | $ | 1.40 | |
Fixed administrative expense | $ | 0.70 | |
Sales commissions | $ | 1.35 | |
Variable administrative expense | $ | 0.60 | |
If 12,500 units are sold, the variable cost per unit sold is closest to:
a. $21.35
b. $13.40
c. $17.30
d. $15.35
Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
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