Lagle Corporation has provided the following information: If 5,000 units are sold, the total variable cost is closest to:
A) $47,750
B) $73,000
C) $57,500
D) $57,750

Question

Lagle Corporation has provided the following information:  If 5,000 units are sold, the total variable cost is closest to:
A) $47,750 
B) $73,000 
C) $57,500 
D) $57,750

Quizplus · Accepted Answer

We have the following information:
Total fixed cost = $140,000
Variable cost per unit = $8.50
Selling price per unit = $19

To calculate the total variable cost, we need to multiply the variable cost per unit by the number of units sold:
Total variable cost = Variable cost per unit x Number of units sold
Total variable cost = $8.50 x 5,000
Total variable cost = $42,500

Therefore, the closest answer is C) $57,500.

Lagle Corporation Has Provided the Following Information: If 5,000