The following income statements are provided for Li Company's last two years of operation:  Year 1 Year 2Number of units produced and sold 3,500   3,000 Sales revenue$101,500  $87,000 Cost of goods sold 68,000   60,000 Gross margin 33,500   27,000 General, selling, and administrative expenses 13,000   12,000 Net income$20,500  $15,000  Assuming that cost behavior did not change over the two-year period, what is the amount of the company's variable cost of goods sold per unit?

A. $22.00 per unit
B. $16.00 per unit
C. $12.00 per unit
D. None of these


Answer: B

Business

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