Id be considered when comparing differential costs between alternatives. Sunk co

ID: 2340213 • Letter: I

Question

Id be considered when comparing differential costs between alternatives. Sunk costs shou E.All of the costs associated with preventing and dealing with defects once 2 Neroli Company reported the following costs during December: s 13,500 $ 21,300 $ 42,900 S 28,200 S 13,000 a. Advertising b. Lease cost on factory equipment c. Raw materials used in production d. Sales commissions e. Insurance on factory f Factory supervision g. Utilities on headquarter office h. Wages paid to assembly line workers i.) Office supplies 14,000 $ 7,300 $ 5,800 S 3,900 The total product cost for December is A. S75.700 B. S 97,000 C. S 110,500 D. 125,200 E. None of the above.

Explanation / Answer

Lease cost on factory equipment

$ 21,300.00

Raw materials used in production

$ 42,900.00

Insurance on factory

$ 13,000.00

Factory supervision

$ 14,000.00

Wages paid to assembly line workers

$ 5,800.00

Total product cost

$ 97,000.00

Correct answer is B. $97,000