Question: Sentry 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 $84.40 per unit.
Sales Volume (units)..................................................... 5,000 6,000
Cost of Sales...............................................................$285,000 $342,000
Selling, General, and Administrative Costs..................... $107,500 $120,000
1. What is the best estimate of the total variable cost per unit:
A) $77.00
B) $57.00
C) $69.50
D) $78.50