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

11ea7761_17c6_d0e5_81a5_57f41d5aac12_TB2580_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