When Carter,Inc.sells 48,000 units,its total variable cost is $115,200.What is its total variable cost when it sells 54,000 units?
A)$100,800
B)$115,200
C)$129,600
D)It cannot be determined from the information given.

Question

Quizplus · Accepted Answer

We can use the formula:

Total Variable Cost = Variable Cost per Unit x Number of Units

To find the variable cost per unit, we can divide the total variable cost by the number of units:

Variable Cost per Unit = Total Variable Cost / Number of Units

Variable Cost per Unit = $115,200 / 48,000 = $2.40

Now we can use this variable cost per unit to find the total variable cost when 54,000 units are sold:

Total Variable Cost = Variable Cost per Unit x Number of Units

Total Variable Cost = $2.40 x 54,000 = $129,600

Therefore, the answer is C) $129,600.