Hut Company's variable selling and administrative expenses are $48,000 at a production level of 6,000 units.If the production level is 8,000 units,what are the variable selling administrative expenses?
A)$48,000
B)$56,000
C)$64,000
D)$80,000

Question

Quizplus · Accepted Answer

Variable expenses change in direct proportion to the production level. If the expenses are $48,000 for 6,000 units, then for 8,000 units, the expenses would be $48,000 * (8,000 / 6,000) = $64,000.

Hut Company's Variable Selling and Administrative Expenses Are $48,000 at a Production