A company sells travel mugs online for $9.They purchase the mugs for $4 and charge the customers $2 for shipping and handling.Cost of goods sold per mug is:

Question

Quizplus · Accepted Answer

Cost of goods sold is the cost incurred by the company to produce and sell one unit of product. In this case, the cost of goods sold per mug is equal to the cost price of the mug, which is $4. Therefore, the best choice is C. Option A, B, and D are not correct because they do not reflect the cost of goods sold per mug.

A Company Sells Travel Mugs Online for $9