Use the information below to answer the following question(s).

Raymaster is a small computer software company which uses the account analysis method and has hired you to perform some management advisory services. The company sold 2,500 high quality payroll programs last year.

-What is the total cost per unit sold?
A) $240.00
B) $288.00
C) $358.40
D) $362.40
E) $462.40

Question

Use the information below to answer the following question(s).

Raymaster is a small computer software company which uses the account analysis method and has hired you to perform some management advisory services. The company sold 2,500 high quality payroll programs last year.

-What is the total cost per unit sold?
A) $240.00 
B) $288.00 
C) $358.40 
D) $362.40 
E) $462.40

Quizplus · Accepted Answer

y = a + bx
y = [$80,000 + $40,000 + $120,000 + $29,000(4) + $20,000] + ($312 × 2,500) = $1,156,000
cost per unit = $1,156,000/2,500 = $462.40

Use the Information Below to Answer the Following Question(s)