During Its First Year of Operations, Connor Company Paid $49,990

question 29

Multiple Choice

During its first year of operations, Connor Company paid $49,990 for direct materials and $19,700 in wages for production workers. Lease payments and utilities on the production facilities amounted to $8,700. General, selling, and administrative expenses were $9,700. The company produced 6,700 units and sold 5,700 units for $16.70 a unit. The average cost to produce one unit is which of the following amounts?

• A) $10.30
• B) $13.75
• C) $13.15
• D) $11.70

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