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Sentry Corp.

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 ...

Solution Summary

This solution is comprised of a detailed explanation to answer what is the best estimate of the total variable cost per unit.

$2.19