International Imports is a merchandising firm.Last year, the company reported sales of $674,500 and cost of goods sold of $404,700.The company's total variable selling and administrative expense was $60,705, and fixed selling and administrative expense was $53,960.The total variable costs for the firm are
A)$60,705.
B)$114,665.
C)$404,700.
D)$465,405.

Question

Quizplus · Accepted Answer

The total variable costs for the firm include both the cost of goods sold ($404,700) and the total variable selling and administrative expense ($60,705). Adding these together gives $404,700 + $60,705 = $465,405.

International Imports Is a Merchandising Firm