At a sales volume of 32,000 units, CD Company's total fixed costs are $64,000 and total variable costs are $60,000. The relevant range is 30,000 to 55,000 units.

-If CD Company sells 43,000 units,what is the total expected cost (Do not round your intermediate calculations)?
A) $146,000.
B) $166,625.
C) $144,625.
D) $124,000.

Question

At a sales volume of 32,000 units, CD Company's total fixed costs are $64,000 and total variable costs are $60,000. The relevant range is 30,000 to 55,000 units.

-If CD Company sells 43,000 units,what is the total expected cost (Do not round your intermediate calculations)?
A) $146,000.
B) $166,625.
C) $144,625.
D) $124,000.

Quizplus · Accepted Answer

The total expected cost can be calculated as follows:
Total expected cost = Fixed costs + (Variable cost per unit x Number of units)
= $100,000 + ($2.25 x 43,000)
= $100,000 + $96,750
= $196,750
Option A, B, and D are incorrect because they either round the intermediate calculation or use incorrect calculations.

At a Sales Volume of 32,000 Units, CD Company's Total