Callis Corporation is a wholesaler that sells a single produ

Callis Corporation is a wholesaler that sells a single product Management has provided the following cost data for two levels of monely sales volume The company sells the product for $141 60 per un Sales volume (units) Cost of sales Selling and administrative costs.... 5,000 6,000 $265,500 $318,600 $393,500 $406,800 The best estmate of the total variable cost per unit is O553 10 O $66 40 O $120 90 O $13180

Solution

Variable cost of sales per unit = (318600-265500)/(6000-5000)= 53.1 Variable selling and administrative per unit = (406800-393500)/(6000-5000)= 13.3 Variable cost per unit = 53.1+13.3 = $66.4 Option 2 is correct