To Follow Is Information About the Units Produced and Total

question 277

Multiple Choice

To follow is information about the units produced and total manufacturing costs for Pine Enterprises for the past six months. Using the high-low method, what is the variable cost per unit?

• A)$1.73
• B)$1.04
• C)$0.38
• D)$2.65

---

Definitions:

Indirect Expense

Costs incurred that are not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Depreciation Expense

Depreciation expense is the allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, decay, or obsolescence.

Department Store

A retail establishment offering a wide range of consumer goods in different product categories known as "departments."

Profit Center

A department or unit within a company responsible for generating profits, with its performance measured based on its ability to produce excess revenue over expenses.