Barredo Corporation's Relevant Range of Activity Is 3,000 Units to 7,000

question 346

Multiple Choice

Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: If 4,000 units are sold, the variable cost per unit sold is closest to:

• A) $16.75
• B) $12.85
• C) $11.90
• D) $14.70

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