What would be the total variable cost at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.
A) $137,020
B) $131,750
C) $162,950
D) $32,448

Question

Quizplus · Accepted Answer

Variable cost per unit = Total variable cost ÷ Total activity
= $131,750 ÷ 5,000 units
= $26.35 per unit
Total variable cost = Variable cost per unit × Total activity
= $26.35 per unit × 5,200 units
= $137,020

What Would Be the Total Variable Cost at an Activity