The Kringel Company Provides the Following Information -Refer to the Figure

question 55

Multiple Choice

The Kringel Company provides the following information:
$\begin{array}{lr}\text { Sales }(200,000 \text { units) } & \$ 500,000 \\\text { Manufacturing costs: } & \\\text { Variable } & 170,000\\\text { Fixed } &30,000 \\\text { Selling and administrative costs: } & \\\text { Variable } &80,000 \\\text { Fixed } & 20,000\end{array}$
-Refer to the figure.What is the variable cost per unit for Kringel?

• A)$0.40
• B)$0.85
• C)$1.25
• D)$2.50

---

Definitions:

Past Demand

Historical data regarding the quantity of goods or services that were sought after by consumers in previous periods.

Qualitative Approach

A research strategy focusing on understanding the quality, nature, or characteristics of phenomena rather than quantifying them with numbers.

Random Fluctuations

The unpredictable changes in variables or systems over time, which can be due to a variety of uncontrolled or random factors.

Seasonal Fluctuations

Variations in demand, supply, or other economic factors that regularly occur at specific times of the year due to changes in season.