A company has monthly fixed costs of $112,000.The variable costs are $5.00 per unit.If the sales price of a unit is $20.00 and we sell 8,000 units,the company's total variable costs will be:
A)$112,000.
B)$160,000.
C)$120,000.
D)$40,000.

Question

Quizplus · Accepted Answer

The total variable costs are calculated by multiplying the variable cost per unit ($5.00) by the number of units sold (8,000), which equals $40,000.

A Company Has Monthly Fixed Costs of $112,000