Paolucci Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows: AverageCost per UnitDirect materials$6.45 Direct labor$3.30 Variable manufacturing overhead$1.25 Fixed manufacturing overhead$3.00 Fixed selling expense$1.05 Fixed administrative expense$0.60 Sales commissions$1.00 Variable administrative expense$0.50 If 5,000 units are sold, the variable cost per unit sold is closest to:
A. $17.15
B. $11.00
C. $12.50
D. $14.00
Answer: C
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