A company produces toy airplanes at a variable cost of $21 per toy.If 6,000 toys are produced at a total variable cost of $126,000,the total variable cost at 4,000 toys will be:
A)$126,000.
B)$ 84,000.
C)$210,000.
D)none of the above.

Question

Quizplus · Accepted Answer

To find out the total variable cost at 4,000 toys, we can use the concept of proportionality. We know that the company produces the toys at a variable cost of $21 per toy. Therefore, the cost per toy is constant, regardless of the number of toys produced.

We can set up the following proportion:

6,000 toys / $126,000 total cost = 4,000 toys / x total cost

Solving for x, we get:

x = (4,000 toys * $126,000 total cost) / 6,000 toys

x = $84,000

Therefore, the total variable cost at 4,000 toys will be $84,000. Hence, the best choice is B).

A Company Produces Toy Airplanes at a Variable Cost of $21