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navik [9.2K]
3 years ago
9

Seymour Corporation manufactures batons. Seymour can manufacture 300,000 batons a year at a variable cost of $750,000 and a fixe

d cost of $450,000. Based on Seymour's predictions, 240,000 batons will be sold at the regular price of $5.00 each. In addition, a special order was placed for 60,000 batons to be sold at a 40 percent discount off the regular price. The unit relevant cost per unit for Seymour's decision is Select one: a. $3.00 b. $1.50 c. $2.50 d. $4.00
Business
1 answer:
makvit [3.9K]3 years ago
7 0

Answer:

c. $2.50

Explanation:

Calculation to determine The unit relevant cost per unit for Seymour's decision is

Unit relevant cost per unit=Variable cost/Number of banton units manufacture

Let plug in the formula

Unit relevant cost per unit=$750,000/350,000 units

Unit relevant cost per unit=$2.50

Therefore The unit relevant cost per unit for Seymour's decision is $2.50

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