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)$134,800

Question

Quizplus · Accepted Answer

We can use the formula:

Total Variable Cost = Total Units * Variable Cost per Unit

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 / Total Units

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

Now we can use this variable cost per unit to find the total variable cost for selling 54,000 units:

Total Variable Cost = Total Units * Variable Cost per Unit

Total Variable Cost = 54,000 units * $2.40
Total Variable Cost = $129,600

Therefore, the best choice is C, $129,600.