Answer the following question(s)using the information below.Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations.
-What are the estimated total costs if Penny's expects to sell 3,000 units next year?
A)$896,000
B)$678,000
C)$1,259,000
D)$269,000
E)$542,000

Question

Answer the following question(s)using the information below.Penny's TV and Appliance Store is a small company that has the following information pertaining to current year operations. 
-What are the estimated total costs if Penny's expects to sell 3,000 units next year?
A)$896,000 
B)$678,000 
C)$1,259,000 
D)$269,000 
E)$542,000

Quizplus · Accepted Answer

Fixed costs are $269,000, and variable costs are $209 per unit.  3,000 units * $209 = $627,000.  $269,000 + $627,000 = $896,000.

Answer the Following Question(s)using the Information Below