Answer the following questions using the information below:
Jerry's TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2011 operations.

-What are the estimated total costs if Penny's expects to sell 3,000 units next year?
A)$1,550,000
B)$1,332,000
C)$1,671,000
D)$1,453,000

Question

Answer the following questions using the information below:
Jerry's TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2011 operations.
 
-What are the estimated total costs if Penny's expects to sell 3,000 units next year?
A)$1,550,000 
B)$1,332,000 
C)$1,671,000 
D)$1,453,000

Quizplus · Accepted Answer

Total costs = Fixed costs + Variable costsFixed costs = $100,000Variable costs = $450 per unitTotal costs = $100,000 + $450 * 3,000 = $1,550,000

Answer the Following Questions Using the Information Below