Total costs are $180,000 when 10,000 units are produced; of this amount, variable costs are $64,000. What are the total costs when 13,000 units are produced?
A)$199,200.
B)$214,800.
C)$234,000.
D)Total costs cannot be calculated based on the information presented.
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

Total variable costs per unit = $64,000 / 10,000 units = $6.40 per unit.Total variable costs for 13,000 units = $6.40 per unit * 13,000 units = $83,200.Total fixed costs = $180,000 - $64,000 = $116,800.Total costs for 13,000 units = $83,200 + $116,800 = $199,200.

Total Costs Are $180,000 When 10,000 Units Are Produced; of This