The relevant operating range of Adens Corporation is 2,000 units to 6,000 units. The average costs per unit when it produces and sells 4,000 units are as follows:

	Average Cost Per Unit
Direct materials	$	6.25
direct labor	$	2.80
Variable production load	$	1.55
Fixed production load	$	2.40
Fixed selling expense	$	0.50
Fixed administrative expense	$	0.40
Sales commissions	$	1.00
Variable administrative expense	$	0.50

If 5,000 units are sold, calculate the variable cost per unit sold .

Answer rating: 100% (QA)

To calculate the variable cost per unit sold we need to consider the ... View the full answer