Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:
Average
Cost per Unit
Direct materials $ 6.25
Direct labor $ 2.80
Variable manufacturing overhead $ 1.55
Fixed manufacturing overhead $ 2.40
Fixed selling expense $ 0.50
Fixed administrative expense $ 0.40
Sales commissions $ 1.00
Variable administrative expense $ 0.50
If 5,000 units are sold, the variable cost per unit sold is closest to:
A. $13.00
B. $10.60
C. $12.10
D. $15.40
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