A review of Parry Corporation's accounting records found that at a volume of 90,000 units, the variable and fixed cost per unit amounted to $8 and $4, respectively. On the basis of this information, what amount of total cost would Parry anticipate at a volume of 85,000 units?
A)$680,000.
B)$1,020,000.
C)$1,040,000.
D)$1,060,000.
E)$1,080,000.

Question

Quizplus · Accepted Answer

Using the given information, we can find the total cost as:
Total Cost = (Variable Cost per unit * Number of units) + Fixed Cost
Total Cost = (8 * 85,000) + 4
Total Cost = 680,000 + 4
Total Cost = $1,040,000
Therefore, the best answer is C).

A Review of Parry Corporation's Accounting Records Found That at a Volume