FRANCORPIS a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below: FRANCORP Income Statement-Automobile Floor Mat Division For First Quarter of Current Year Sales $927,500 Less cost of 275,000 goods sold Gross margin Less operating expenses: 652,500 Selling expenses $205,500 Administrative 280,000 485,500 expenses Net income $167,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable. Determine the total variable cost per unit. O $137.81 O $153.99 O $123.87 O $145.08
FRANCORPIS a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below: FRANCORP Income Statement-Automobile Floor Mat Division For First Quarter of Current Year Sales $927,500 Less cost of 275,000 goods sold Gross margin Less operating expenses: 652,500 Selling expenses $205,500 Administrative 280,000 485,500 expenses Net income $167,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable. Determine the total variable cost per unit. O $137.81 O $153.99 O $123.87 O $145.08
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![FRANCORP is a large retailer of automobiles floor mats. An income statement for the most
recent quarter is presented below:
FRANCORP
Income Statement-Automobile Floor Mat Division
For First Quarter of Current Year
Sales
$927,500
Less cost of
goods sold
Gross margin
Less operating
expenses:
275,000
652,500
Selling
expenses
$205,500
Administrative
280,000
485,500
expenses
Net income
$167,000
The liners sell, on average, for $350 each. The department's variable selling expenses are $35
per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35%
variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of
$125 per mat. Cost of Goods Sold is 50% variable.
Determine the total variable cost per unit.
O $137.81
O $153.99
O $123.87
O $145.08](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c53abdd-1c9c-420e-bb57-0347d2d5b202%2F83da7cd7-db9d-4369-a0cb-e2d3c0b54077%2Fbole2k_processed.png&w=3840&q=75)
Transcribed Image Text:FRANCORP is a large retailer of automobiles floor mats. An income statement for the most
recent quarter is presented below:
FRANCORP
Income Statement-Automobile Floor Mat Division
For First Quarter of Current Year
Sales
$927,500
Less cost of
goods sold
Gross margin
Less operating
expenses:
275,000
652,500
Selling
expenses
$205,500
Administrative
280,000
485,500
expenses
Net income
$167,000
The liners sell, on average, for $350 each. The department's variable selling expenses are $35
per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35%
variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of
$125 per mat. Cost of Goods Sold is 50% variable.
Determine the total variable cost per unit.
O $137.81
O $153.99
O $123.87
O $145.08
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