The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available: All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 17,000 Debs in March, then the average budgeted selling and administrative expenses per unit sold for March is closest to:

Question

The Puyer Corporation makes and sells only one product called a Deb. The company is in the process of preparing its Selling and Administrative Expense Budget for next year. The following budget data are available:  All of these expenses (except depreciation) are paid in cash in the month they are incurred.
If the company has budgeted to sell 17,000 Debs in March, then the average budgeted selling and administrative expenses per unit sold for March is closest to:

Quizplus · Accepted Answer

11eacbfc_c601_dfb2_8ffe_4d9156a56458_TB7552_00 Budgeted selling and administrative expenses = $170,000 + ($2.50 per unit × 17,000 units)
= $170,000 + $42,500 = $212,500
Average selling and administrative expense per unit = $212,500 ÷ 17,000 units = $12.50 per unit

The Puyer Corporation Makes and Sells Only One Product Called