Figure 2-7

question 55

Multiple Choice

Figure 2-7. Gateway Company produces a product with the following per-unit costs:
Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000.
Refer to Figure 2-7.Prime cost per-unit was?

• A)$19
• B)$23
• C)$34
• D)$11

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Definitions:

Sales Ratio

The proportion between two different sales figures, often used to analyze the performance or outcomes of sales activities.

Passenger Cars

Vehicles designed primarily for the transport of passengers and their personal baggage, usually having four wheels and seating for up to eight people.

Pickup Trucks

A type of vehicle with an enclosed cab and an open cargo area with low sides and tailgate.

Service Charge

A fee collected for the provision of a service, often added to the cost of transactions in financial services.