Answer the Following Questions Using the Information Below:
Genend's Good

question 163

Multiple Choice

Answer the following questions using the information below:
Genend's Good Value Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.
$\begin{array}{lr}\text { Sales ( } 6,000 \text { microwave ovens) } & \$ 1,740,000 \\\text { Cost of goods sold } & 960,000 \\\text { Store manager's salary per year } & 100,000 \\\text { Operating costs per year } & 250,000 \\\text { Advertising and promotion per year } & 30,000 \\\text { Commissions (3\% of sales) } & 52,200\end{array}$
-What was the variable cost per unit sold for 2015?

• A) $8.70
• B) $160
• C) $168.70
• D) $232

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Definitions:

Year Ended

Refers to the end of a fiscal year, when a company completes its annual accounting period.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Estimates Change

Refers to the revision of previous financial estimates based on new information or insights, impacting forecasts and budget plans.

Asset Disposals

The process of getting rid of an asset through sale, trade, closure, or removal from the company's books.