The Cumberland Company Provides the Following Information What Is the Variable Cost Per Unit for Cumberland?
A)$1

Multiple Choice

The Cumberland Company provides the following information: $\begin{array} { l } \text {Sales (250,000 units) }&\$625,000\\ \text {Manufacturing costs: }&\\ \text {Variable }&212,500\\ \text { Fixed}&37,500\\ \text {Selling and administrative costs: }&\\ \text {Variable }&100,000\\ \text { Fixed}&25,000\\\end{array}$

What is the variable cost per unit for Cumberland?

A) $1.25
B) $0.85
C) $0.40
D) $0.75