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Question - Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations.
Sales (2,000 televisions) $900,000
Cost of goods sold 400,000
Store manager's salary per year 70,000
Operating costs per year 157,000
Advertising and promotion per year 15,000
Commissions (4% of sales) 36,000
What was the Penny's TV variable cost per unit sold?
a. $339
b. $200
c. $218
d. $235
e. $18
Explain briefly what is revealed by the ratios and other calculations in the context of the company's profitability, efficiency, liquidity, gearing
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