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Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are
Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:
Average Cost per Unit | ||
Direct materials | $ | 6.25 |
Direct labor | $ | 2.80 |
Variable manufacturing overhead | $ | 1.55 |
Fixed manufacturing overhead | $ | 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, the variable cost per unit sold is closest to:
$13.00 | ||
$10.60 | ||
$12.10 | ||
$15.40 |
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