Total fixed costs for Toys and Trinkets Incorporated are $88,000.Total costs,including both fixed and variable,are $155,000 if 268,000 units are produced.The total variable costs at a level of 275,000 units would be
A)$68,750.
B)$159,049.
C)$90,299.
D)$151,055.

Question

Quizplus · Accepted Answer

A)
Cost Equation y = vx + f
$155,000 = 268,000x + $88,000
X = 0.25
Then $0.25 × 275,000 = $68,750

Total Fixed Costs for Toys and Trinkets Incorporated Are $88,000