ECONOMICS
Multiple Choice
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. $84.50.
D. $106.90.
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