Yankee Corporation manufactures a single product.The company has the following cost structure: Last year, 4, 000 units were produced and 3, 500 units were sold.There were no beginning inventories. Under variable costing, the unit product cost would be:
A)$4 per unit
B)$5 per unit
C)$7 per unit
D)$8 per unit

Question

Yankee Corporation manufactures a single product.The company has the following cost structure:  Last year, 4, 000 units were produced and 3, 500 units were sold.There were no beginning inventories. Under variable costing, the unit product cost would be:
A)$4 per unit 
B)$5 per unit 
C)$7 per unit 
D)$8 per unit

Quizplus · Accepted Answer

Under variable costing, the unit product cost is the variable production cost of $4 per unit.

Yankee Corporation Manufactures a Single Product