Based on a predicted level of production and sales of 21,000 units, a company anticipates total...
Based on a predicted level of production and sales of 21,000 units, a company anticipates total variable costs of $105,000, fixed costs of $25,200, and operating income of $37,000. Based on this information, the budgeted amount of variable costs for 19,000 units would be:
Multiple Choice
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$170,200.
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$95,000.
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$105,000.
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$62,200.
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$25,200.
Homework Answers
Variable cost per unit=$105000/21000
=$5 per unit
Hence Total Variable costs for 19000 units =$5 per unit*19000
=$95,000
NOTE:Total fixed costs and variable cost per unit do not change with change in units.
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Based on a
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