Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:  AverageCost per UnitDirect materials$6.25Direct labor$2.80Variable manufacturing overhead$1.55Fixed manufacturing overhead$2.40Fixed selling expense$0.50Fixed administrative expense$0.40Sales commissions$1.00Variable administrative expense$0.50 If 5,000 units are sold, the variable cost per unit sold is closest to:

A. $12.10
B. $13.00
C. $15.40
D. $10.60


Answer: A

Business

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