Donellan Company produces a special gear used in automatic transmissions. Each gear sells for $30, and the company sells approximately 500,000 gears each year. Unit cost data for the year follows: The unit cost of gears for variable costing inventory purposes is:
A)$14.
B)$17.
C)$20.
D)$24.

Question

Donellan Company produces a special gear used in automatic transmissions. Each gear sells for $30, and the company sells approximately 500,000 gears each year. Unit cost data for the year follows:  The unit cost of gears for variable costing inventory purposes is:
A)$14. 
B)$17. 
C)$20. 
D)$24.

Quizplus · Accepted Answer

The Answer is C

Donellan Company Produces a Special Gear Used in Automatic Transmissions