Bryon Catering Produces Box Lunches, Which It Sells for $20

question 45

Multiple Choice

Bryon Catering produces box lunches, which it sells for $20 each. During the current month, the company produced 2,800 meals, but only sold 2,700 meals. The variable cost per meal was $12 and the sales commissions per meal were $1. Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200. What is the product cost per meal under absorption costing?

• A) $14.00
• B) $12.50
• C) $20.50
• D) $12.00

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