Last year,XYZ Company sold 10,000 units that cost $40,000 to produce.This cost included $4,000 in fixed computer resource costs,$6,000 in fixed labor cost and $3.00 per unit for communications resource costs.XYZ Company expects to sell 20,000 units next year.Resource costs are expected to be in the same relevant range next year.What are the total estimated costs for next year?
A)$70,000
B)$75,000
C)$80,000
D)$84,000

Question

Quizplus · Accepted Answer

The total estimated costs for next year are $70,000. This includes $10,000 in fixed computer resource costs, $6,000 in fixed labor cost, and $60,000 in variable communications resource costs (20,000 units x $3.00 per unit).

Last Year,XYZ Company Sold 10,000 Units That Cost $40,000 to Produce.This