Paris Plastics has monthly fixed costs of $90,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $16.00 and Paris Plastics sell 12,000 units,the company's total variable costs will be:
A)$ 90,000.
B)$192,000.
C)$144,000.
D)$ 48,000.

Question

Quizplus · Accepted Answer

The total variable costs are calculated by multiplying the variable cost per unit ($4.00) by the number of units sold (12,000). Therefore, the total variable costs are $4.00 * 12,000 = $48,000.

Paris Plastics Has Monthly Fixed Costs of $90,000,while Its Variable