12. Use the following information to answer this question.

Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $115.80 per unit.

Sales volume (units)

4,000 5,000

Cost of sales $338,000 $422,500

Selling and administrative costs $89,600 $106,000

The best estimate of the total variable cost per unit is

A. $105.70.

B. $100.90.

C. $106.90.

D. $84.50.

12. Use the following information to answer this question.

Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $115.80 per unit.

Sales volume (units)

4,000 5,000

Cost of sales $338,000 $422,500

Selling and administrative costs $89,600 $106,000

The best estimate of the total variable cost per unit is

A. $105.70.

B. $100.90.

C. $106.90.

D. $84.50.

The answer is not A