Use the following information to answer this question. Callaham Corporation is a
ID: 2386068 • Letter: U
Question
Use the following information to answer this question.Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $115.80 per unit.
Sales volume (units)
4,000 5,000
Cost of sales $338,000 $422,500
Selling and administrative costs $89,600 $106,000
The best estimate of the total variable cost per unit is
A. $105.70.
B. $100.90.
C. $106.90.
D. $84.50.
***The question is asking for the TOTAL VARIABLE COST PER UNIT
***The answer is NOT A, already tried that. Please SHOW me how to get this***
Explanation / Answer
B. $100.90.
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