Use the following data: Variable production costs $ 4,80,000 Variable S and A costs $ 55,000 Fixed S and A costs $ 1,00,000 Fixed production costs $ 2,70,000 Unit sales price $ 8 Production in units 1,20,000 Sales in units 1,10,000 Under variable costing, the production cost per unit is: A. $2.25 B. $6.25 C. $4.36 D. $4.00
Use the following data: Variable production costs $ 4,80,000 Variable S and A costs $ 55,000 Fixed S and A costs $ 1,00,000 Fixed production costs $ 2,70,000 Unit sales price $ 8 Production in units 1,20,000 Sales in units 1,10,000 Under variable costing, the production cost per unit is: A. $2.25 B. $6.25 C. $4.36 D. $4.00
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4BE
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
Transcribed Image Text:Use the following data:
Variable production costs
$ 4,80,000
Variable S and A costs
$ 55,000
Fixed S and A costs
$ 1,00,000
Fixed production costs
$ 2,70,000
Unit sales price
$ 8
Production in units
1,20,000
Sales in units
1,10,000
Under variable costing, the production cost per unit is:
A. $2.25
B. $6.25
C. $4.36
D. $4.00
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