Dakota,Inc What Is the Unit Cost Per Item Sold? (Round Your

question 245

Multiple Choice

Dakota,Inc.is a merchandiser of medallions.The company sold 15,100 units during the year.The company has provided the following information: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 558,000 \\\hline \text { Purchases (excluding Freight In) } & 280,000 \\\hline \text { Selling and Administrative Expenses } & 66,000 \\\hline \text { Freight In } & 13,000 \\\hline \text { Beginning Merchandise Inventory } & 52,000 \\\hline \text { Ending Merchandise Inventory } & 54,900 \\\hline\end{array}$$ What is the unit cost per item sold? (Round your answer to the nearest cent.)

• A) $19.21
• B) $15.77
• C) $22.85
• D) $19.40

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Definitions:

Effective Yield

The total yield, or return, on an investment that takes into account the effect of compounding interest, as opposed to just the nominal rate.

Present Value Factors

A multiplier used to calculate the present value of a future payment or series of payments, reflecting the time value of money.

Present Value Factors

A set of coefficients used to calculate the present value of a future cash flow, considering a specific discount rate.

Effective Yield

A measure of the return on investment, taking into account the effect of compounding interest, unlike the nominal interest rate.