Answer the Following Question Using the Information Below

question 176

Multiple Choice

Answer the following question using the information below.Pederson Company reported the following:

-What is the average manufacturing cost per unit?

• A)$40.00
• B)$42.55
• C)$75.50
• D)$35.00
• E)$42.25

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Definitions:

FOB Destination

is a shipping term indicating the seller bears delivery risk and costs until the goods reach the buyer's location, at which point the buyer takes over.

Title

A legal term referring to the formal right of ownership of property, assets, or a company.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer is responsible for the goods and the shipping cost as soon as the goods leave the seller's premises.

FOB Destination

A shipping term indicating that the seller bears the shipping costs and retains ownership of the goods until they are delivered to the buyer's location, at which point the buyer takes responsibility.