Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A firm makes one product, and its unit selling price is $75$. The table lists the costs for sales and a production output of $8000$ units: direct costs $158\,000$, variable manufacturing overheads $74\,000$, fixed manufacturing overheads $80\,000$, variable selling overheads $20\,000$, and fixed administration overheads $100\,000$. If absorption costing is used, what is the gross profit per unit sold?

  • A$21.00$
  • B$36.00$
  • C$43.50$
  • D$46.00$

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