Martin Corp

question 43

Multiple Choice

Martin Corp.had an unfavourable sales price variance of $4800 for 2009.Martin had budgeted for sales of 10 000 units at a sales price of $5 each.Actual sales in 2009 totalled 12 000 units.What was the actual sales price per unit?

• A) $5.40
• B) $4.60
• C) $4.52
• D) $5.48

---

Definitions:

Output

Represents the total amount of goods or services produced by a firm or economy in a specific period.

Minimum Efficient Scale

The smallest level of production a firm can achieve while still taking full advantage of economies of scale in terms of cost per unit.

Long-Run Average Total Cost

The per unit cost of production that includes both fixed and variable costs when all inputs are considered variable in the long run.

Output

The amount of products or services that a company, sector, or nation generates over a specific timeframe.