Barredo Corporation\'s relevant range of activity is 3,000 units to 7,000 units.

Question

Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows Average Cost per Unit 6.60 3.65 S1.65 Direet materials birect labor Variable manafacturing overhead Pixed manafacturing overhead Pixed selling expense Pixed adninistrative expense Sales commianions Variable adeinistrative expense 2.80 0.70 0.40 0.50 0-45 If 4,000 units are sold, the variable cost per unit sold is closest to $16.75 $12.85 $11.90 O $14.70

Explanation / Answer

Total variable cost=(Direct materials+Direct labor+Variable manufacturing overhead+Sales commissions+Variable adminstrative expenses)

=(6.6+3.65+1.65+0.5+0.45)

which is equal to

=$12.85(B)

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.