When 5,000 units are produced variable costs are $35 per unit and total costs are $200,000.What are the total costs when 8,000 units are produced?
A)$200,000.
B)$305,000.
C)$240,000.
D)Some other amount.
E)Total costs cannot be calculated based on the information presented.

Question

Quizplus · Accepted Answer

Variable costs for 8,000 units are $280,000 (8,000 units x $35/unit). Fixed costs are $25,000 ($200,000 total costs - $175,000 variable costs for 5,000 units). Total costs for 8,000 units are $305,000 ($280,000 variable + $25,000 fixed).

When 5,000 Units Are Produced Variable Costs Are $35 Per