Sentry Corp.
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Passage to Question 1: Sentry Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $84.40 per unit.
Sales Volume (units).....................................................5,000 6,000
Cost of Sales...............................................................$285,000 $342,000
Selling, General, and Administrative Costs.....................$107,500 $120,000
1. What is the best estimate of the total variable cost per unit:
A) $77.00
B) $57.00
C) $69.50
D) $78.50
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Passage to Question 1: Sentry Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $84.40 per unit.
Sales Volume ...
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