Date Company
Date Company Makes Calendars Fixed Marketing Expense Totalled $13,000, and Fixed Administrative Expense Totalled

question 118

Multiple Choice

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

• A) $1.30
• B) $3.70
• C) $4.00
• D) $4.60

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Definitions:

Valuation-Relevant

Describes information or data that can significantly impact the valuation of a company's assets, liabilities, or equity.

Transitory Components

Temporal elements in financial reports or economic indicators that are expected to exist only for a short period and do not reflect the long-term performance or value.

Quality-Enhanced

A description for improvements made to a product or service to increase its value or appeal to consumers.

Reported Earnings

The profit a company officially reports to the public in its financial statements, adhering to standard accounting practices.