A College "Marketing Club" Printed 1,000 "We're Number 1" Bumper

question 194

Multiple Choice

A college "marketing club" printed 1,000 "We're Number 1" bumper stickers for sale at $3.00 each as a fund-raiser. Its fixed costs were $500, and the variable cost for each sticker was $.50. The club's average cost per unit was:

• A) $2.00.
• B) $2.50.
• C) $0.50.
• D) $1.00.
• E) There is not enough information to tell.

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Definitions:

Controlling Account

A general ledger account that summarizes the balances of a set of subsidiary accounts, facilitating overall management.