The Following Cost Formula Relates to Last Year's Operations at Lemine

question 27

Multiple Choice

The following cost formula relates to last year's operations at Lemine Manufacturing Corporation:
Y = $84,000 + $60.00X
In the formula above, 75% of the fixed cost and 90% of the variable cost are manufacturing costs. Y is the total cost and X is the number of units produced and sold.
-If Lemine produces and sells 7,000 units,what is the unit product cost under each of the following methods?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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