Paolucci Corporation's relevant range of activity is 4,800 units to 11,000 units. When it produces and sells 7,900 units, its average costs per unit are as follows:

Paolucci Corporation's relevant range of activity is 4,800 units to 11,000 units. When it produces and sells 7,900 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	6.50
Direct labor	$	3.40
Variable manufacturing overhead	$	1.40
Fixed manufacturing overhead	$	3.60
Fixed selling expense	$	1.35
Fixed administrative expense	$	0.90
Sales commissions	$	1.30
Variable administrative expense	$	0.80

If 6,900 units are sold, the variable cost per unit sold is closest to:

Multiple Choice

• $13.40

  Correct
• $19.25
• $11.30
• $14.90

Explanation

Direct materials	$	6.50
Direct labor		3.40
Variable manufacturing overhead		1.40
Sales commissions		1.30
Variable administrative expense		0.80
Variable cost per unit sold	$	13.40