Question

QUESTION 21 5 points 8 F G H Goal Se 62500 22500 52000 74500 -12000 Toy by changing А B C D 1 2 Inputs Calculations and Outputs 3 Units Sales Price 25 Annual Revenue 4 Annual Fixed Cost 52000 Annual Variable Cost 5 Unit Variable Cost 9 Annual Fixed Cost 6 Annual Total Cost 7 Quantity Made and Sold 2500 Annual Profit (Loss) 8 Reference Break Even Analysis What information should be entered in Cell E4 to calculate Annual Variable Cost? A-85-87 B-BS C.-B5 B7 D-B3*B7 OK

Answer 1

The answer is

C. =B5*B7

Annual variable cost = Variable cost per unit*Number of units

Hence, B5*B7 i.e. 9*2500 = $22,500