Question

Albacore, Inc. sells tuna to grocery stores. Below are the costs associated with producing and selling said tuna:

Rent on administrative office	$1,200
President's salary	75,000
Advertising	2,300
Fishermen's compensation	35,000
Depreciation on fishing boats	10,000
Depreciation on canning facility	15,000
Office Manager's salary	45,000
Administrative employee's salaries	50,000
Fuel for boats	25,000
Empty can Materials	15,000

Assume the costs above are incurred in order to produce 1,000,000 cans of tuna. If so, what is the per unit cost for each individual can? (multiple choice)

Group of answer choices

A. $0.10

B. $0.15

C. $1.00

D. $0.27

Answer 1

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