A company produces toy airplanes at a variable cost of $24 per toy. If 7090 toys are produced at a total variable cost of $170,160, the total variable cost at 4540 toys will be
A)$170,160.
B)$24.
C)$108,960.
D)$279,120.

Question

Quizplus · Accepted Answer

We can use the formula:

Total variable cost = variable cost per unit x number of units

To find the variable cost per unit, we divide the total variable cost by the number of units:

$170,160 ÷ 7090 = $24

Now we can use the same formula to find the total variable cost at 4540 toys:

Total variable cost = variable cost per unit x number of units
Total variable cost = $24 x 4540
Total variable cost = $108,960

Therefore, the answer is C, $108,960.

A Company Produces Toy Airplanes at a Variable Cost of $24