Reference: 06-10
the Following Data Have Been Provided by a Retail

question 26

Multiple Choice

Reference: 06-10
The following data have been provided by a retail company that sells a single product. $$\begin{array} { | l | l | l | } \hline & \text { This Year } & \text { Last Year } \\\hline \text { Units sold } & 200,000 & 150,000 \\\hline \text { Sales revenue } & \$ 1,000,000 & \$ 750,000 \\\hline \text { Less cost of goods sold } & 700,000 & 525,000 \\\hline \text { Gross margin } & 300,000 & 225,000 \\\hline \text { Less operating expenses } & 222,000 & 210,000 \\\hline \text { Net income } & \$ 78,000 & \$ 15,000 \\\hline\end{array}$$
-What is the best estimate of the company's variable operating expenses per unit

• A)$4.17 per unit.
• B)$0.24 per unit.
• C)$0.90 per unit.
• D)$0.71 per unit.

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