Fractured Auto Repair projects variable labor costs of $21,500 in March when 8,600 units are produced.If production is expected to drop to 8,000 units in April, what is the expected labor cost in April?
A)$21,500
B)$20,000
C)$23,113
D)$20,900
E)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

The labor cost per unit is $21,500 / 8,600 units = $2.50 per unit. For 8,000 units, the expected labor cost is 8,000 units * $2.50 per unit = $20,000.

Fractured Auto Repair Projects Variable Labor Costs of $21,500 in March