Five Seasons is a merchandiser of packed foods. The company provides the following information for the year: Sales Revenue $ 146 comma 000 Cost of Goods Sold 64 comma 000 Operating Expenses 68 comma 500 Net Income 13 comma 500 Number of Units Sold 23 comma 000 How much was the unit cost per item of product sold? (Round your answer to the nearest cent.) A. $ 2.78 B. $ 100.59 C. $ 6.35 D. $ 5.76

$2.7 per unit was the unit cost per item of product sold

Solution:

Giving the following information:

Sales Revenue $146,000

Cost of Goods Sold $64,000

Operating Expenses $68,500

Net Income $13,500

Number of Units Sold 23,000

To calculate the unitary cost of product sold we need to divide the total cost of goods sold by the number of units sold:

Unitary COGS= Total cogs/number of units

Unitary COGS= 64,000/23,000= $2.7 per unit

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