The Puyer Corporation Makes and Sells Only One Product Called

question 113

Multiple Choice

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available:
All of these expenses (except depreciation) are paid in cash in the month they are incurred.
-If the company has budgeted to sell 17,000 Debs in March,then the average budgeted selling and administrative expenses per unit sold for March is closest to:

• A) $12.50 per unit
• B) $2.50 per unit
• C) $10.00 per unit
• D) $17.00 per unit

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Definitions:

Present Value

The present worth of a sum of money or a series of cash flows expected in the future, assuming a certain rate of return.

Compounded Annually

A method of calculating interest where the interest rate is applied once per year, and each year’s interest calculation includes the interest from the previous years.

Annual Rents

Regular payments made for the use of property or land over a yearly basis.

Compound Interest Tables

Reference tables used to find the amount of compound interest earned or payable over a period of time, based on various rates and compounding frequencies.