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Forever Quilting Is a Small Company That Makes Quilting Kits

Question 257

Multiple Choice

Forever Quilting is a small company that makes quilting kits priced at $120.The costs of the materials that go into each kit are $45.It costs $5 in labor to assemble a kit.The company has monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$500 for advertising,and $4,500 for the monthly salary of its owner.Forever Quilting's unit variable cost for its kits is


A) $5.
B) $45.
C) $50.
D) $120.
E) $170.

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