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During Its First Year of Operations,Connor Company Paid $50,000 for Direct

Question 4

Multiple Choice

During its first year of operations,Connor Company paid $50,000 for direct materials and $36,000 in wages for production workers.Lease payments and utilities on the production facilities amounted to $14,000.General,selling,and administrative expenses were $16,000.The company produced 5,000 units and sold 4,000 units for $30.00 a unit.The average cost to produce one unit is which of the following amounts?


A) $20.00
B) $16.00
C) $18.40
D) $25.00

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