Total costs are $140 000 when 10 000 units are made. Of this amount, variable costs are $4 per unit. What are the total costs when 8000 units are produced?

A) $140 000
B) $136 000
C) $132 000
D) $124 000

Question

Radja butarbutar · Accepted Answer

Final Answer : C, Explanation :  To find the total cost when 8000 units are produced, we need to use the formula:Total Cost = Fixed Cost + (Variable Cost per unit x Number of units)We are given that 10,000 units are made and the total cost is $140,000. This means that the fixed cost is:Fixed Cost = Total Cost - Variable Cost per unit x Number of unitsFixed Cost = $140,000 - $4 x 10,000Fixed Cost = $100,000Now we can use this information to find the total cost when 8000 units are produced:Total Cost = $100,000 + ($4 x 8000)Total Cost = $100,000 + $32,000Total Cost = $132,000Therefore, the answer is C: $132,000.

Total costs are $140 000 when 10 000 units are made. Of this amount, variable costs are $4 per unit. What are the total costs when 8000 units are produced?

A) $140 000
B) $136 000
C) $132 000
D) $124 000

Definitions

Learning Objectives

Learning Objectives

Related questions

Total costs are $140 000 when 10 000 units are made. Of this amount, variable costs are $4 per unit. What are the total costs when 8000 units are produced?A) $140 000B) $136 000C) $132 000D) $124 000

Definitions

Learning Objectives

Learning Objectives

Related questions

Total costs are $140 000 when 10 000 units are made. Of this amount, variable costs are $4 per unit. What are the total costs when 8000 units are produced?

A) $140 000
B) $136 000
C) $132 000
D) $124 000