FRANCORP is a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below: Sales $927,500 Less Cost of Goods Sold 275,000 Gross Marign 652,500 Less Operating Expenses: Selling Expenses 205,500 Administrative Expenses 280,000 485,500 Net Income 167,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable. Determine the total variable cost per unit. a) $123.87 b) $137.81 c) $145.08 d) $153.99
FRANCORP is a large retailer of automobiles floor mats. An income statement for the most recent quarter is presented below:
Sales $927,500
Less Cost of Goods Sold 275,000
Gross Marign 652,500
Less Operating Expenses:
Selling Expenses 205,500
Administrative Expenses 280,000 485,500
Net Income 167,000
The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 35% variable and 65% fixed. The company purchases its floor mats from a supplier at a cost of $125 per mat. Cost of Goods Sold is 50% variable.
Determine the total variable cost per unit.
a) $123.87
b) $137.81
c) $145.08
d) $153.99
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