Slappy Corporation Leases Its Corporate Headquarters Building

question 116

Multiple Choice

Slappy Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 20,000 units, the lease cost was $482,000.
-To the nearest whole cent,what should be the average lease cost per unit at a sales volume of 19,200 units in a month? (Assume that this sales volume is within the relevant range. )

• A)$28.52
• B)$24.60
• C)$25.10
• D)$24.10

---

Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.

Accounting

The systematic process of recording, summarizing, and analyzing financial transactions of a business, providing insight into its financial health and performance.

Correct Entry

An accurate and approved accounting record reflecting a financial event.

Incorrect Entry

A mistake or error in recording financial transactions, which can lead to discrepancies in accounting records and financial statements.