Date Company Makes Calendars -Refer to the Figure

question 150

Multiple Choice

Date Company makes calendars. Information on cost per unit is as follows:
Fixed marketing expense totalled $13,000, and fixed administrative expense totalled $35,000. The price per calendar is $10.
$\begin{array}{lr}\text { Direct materials } & \$ 1.50 \\\text { Direct labour } & 1.20 \\\text { Variable overhead } & 0.90 \\\text { Variable marketing expense } & 0.40\end{array}$
-Refer to the Figure.What is the variable product expense per unit?

• A)$1.30
• B)$3.60
• C)$4.00
• D)$4.60

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Definitions:

Future Cash Flows

The anticipated receivable or payable cash amounts of a company, used for investment analysis and financial planning.

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns.

Time Periods

Distinct intervals of time used for financial reporting, planning, and forecasting, which can range from short-term to long-term durations.

Present Value

Refers to the current worth of a future sum of money or stream of cash flows given a specified rate of return.