A company has monthly fixed costs of $96,000. The variable costs are $8.00 per unit. If the sales price of a unit is $14.00 and we sell 8000 units, the company's total variable costs will be
A)$96,000.
B)$64,000.
C)$112,000.
D)$48.

Question

Quizplus · Accepted Answer

Total variable cost per unit = $8.00
Number of units sold = 8000

Total variable costs = Total variable cost per unit * Number of units sold
= 8.00 * 8000
= $64,000

Therefore, the answer is B.

A Company Has Monthly Fixed Costs of $96,000