12. Use the following information to answer this question. Callaham Corporation

Question

12. Use the following information to answer this question.
Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $115.80 per unit.
Sales volume (units)
4,000 5,000
Cost of sales $338,000 $422,500
Selling and administrative costs $89,600 $106,000
The best estimate of the total variable cost per unit is
A. $105.70.

B. $100.90.

C. $106.90.

D. $84.50.


12. Use the following information to answer this question.
Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $115.80 per unit.
Sales volume (units)
4,000 5,000
Cost of sales $338,000 $422,500
Selling and administrative costs $89,600 $106,000
The best estimate of the total variable cost per unit is
A. $105.70.

B. $100.90.

C. $106.90.

D. $84.50.

The answer is not A

Explanation / Answer

B. $100.90.

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