Presented Below Is the Production Data for the First Six

question 118

Multiple Choice

Presented below is the production data for the first six months of the year showing the mixed costs incurred by Eunice Company.
$\begin{array}{lll}\text { Month }&\text { Cost }&\text { Units }\\\text { January } & \$ 7,500 & 4,000 \\\text { February } & 13,000 & 7,500 \\\text { March } & 11,500 & 9,000 \\\text { April } & 11,700 & 11,500 \\\text { May } & 13,500 & 12,000 \\\text { June } & 11,850 & 6,000\end{array}$
Eunice Company uses the high-low method to analyze mixed costs.The variable cost per unit is ________.

• A) $0.625
• B) $0.75
• C) $1.25
• D) $1.31

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, entitling the owner to vote at shareholders' meetings and receive dividends.

Outstanding

Refers to shares that are currently owned by investors, including public shareholders, company officials, and insiders.

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders without any change in ownership percentage.