The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit:$38Production Selling and administrative$14Fixed costs per year: Production$140,000Selling and administrative$84,000 Last year, 7,000 units were produced and 6,800 units were sold. There was no beginning inventory. Under variable costing, the unit product cost would be:
A. $38 per unit
B. $70 per unit
C. $52 per unit
D. $58 per unit
Answer: A
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