If 4,000 units are sold, the total variable cost is closest to:

A) $67,000
B) $47,600
C) $51,400
D) $58,800

Question

If 4,000 units are sold, the total variable cost is closest to:A) $67,000B) $47,600C) $51,400D) $58,800

Humayra Shalizan · Accepted Answer

Final Answer : C, Explanation :  The total variable cost can be calculated by multiplying the variable cost per unit by the total number of units sold. From the table, we can see that the variable cost per unit is $12.85. Therefore, the total variable cost for 4,000 units is:$12.85 x 4,000 = $51,400Therefore, the closest answer choice is C, $51,400.     Reference: CH01-Ref19Varela Corporation's relevant range of activity is 2,000 units to 6,000 units.When it produces and sells 4,000 units, its average costs per unit are as follows:

If 4,000 units are sold, the total variable cost is closest to:

A) $67,000
B) $47,600
C) $51,400
D) $58,800

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