WDY Currently Sells Its Primary Product for $85 Per Unit

question 90

Multiple Choice

WDY currently sells its primary product for $85 per unit, with a profit margin of 30%. Cost of goods sold totals 40% of the product's total cost. WDY's managers are considering implementing a kaizen costing system. WDY's current product cost (direct costs and manufacturing overhead) per unit is

• A) $25.50
• B) $59.50
• C) $23.80
• D) $15.30

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Definitions:

Muscle

A tissue in animal bodies composed of fibers that contract to produce movement or maintain the position of parts of the body.

Blood Vessels

Tubular structures through which blood circulates in the body, including arteries, veins, and capillaries, responsible for transporting nutrients, oxygen, and waste.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, which is produced in moments of stress and increases heart rate, muscle strength, blood pressure, and sugar metabolism.

Endocrine Systems

A collection of glands that produce hormones to regulate processes such as growth, metabolism, and sexual function.