If the company's volume increases to 5,000 units,the company's total costs will be:
A) $100,000
B) $90,000
C) $102,500
D) $80,000

Name: If the company's volume increases to 5,000 units,the company's total costs will be: A) $100,000 B) $90,000 C) $102,500 D) $80,000
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Variable cost per unit = Total variable cost ÷ Number of units
Variable cost per unit = $50,000 ÷ 4,000 units = $12.50 per unit
Total cost = Fixed cost + Variable cost
Total cost = $40,000 + ($12.50 per unit x 5,000 units)= $102,500

If the Company's Volume Increases to 5,000 Units,the Company's Total