Reference no: EM132530503

Pedregon Corporation provided the following information

                                                                     Cost per unit                               Cost per period

Direct Materials                                     $6.45

Direct Labor                                        $3.30

Variable manufacturing overhead            $1.25

fixed manufacturing overhead                                                                     $16,500

sales commissions                                $0.45

variable administrative expense                 $0.50

fixed selling and administrative expense                                                            $4,200

Question 1: If 5,000 units are sold what the total variable cost is closest to?

Option A) $68,250

Option B) $78,500

Option C) $59,750

Option D) $55,000