When 10,000 units are produced, variable costs are $6 per unit. Therefore, when 20,000 units are produced:
A)variable costs will total $120,000
B)variable costs will total $60,000
C)variable unit costs will increase to $12 per unit
D)variable unit costs will decrease to $3 per unit

Question

Quizplus · Accepted Answer

Variable costs per unit remain constant regardless of the number of units produced. Therefore, at 20,000 units, the total variable cost is $6 per unit * 20,000 units = $120,000.

When 10,000 Units Are Produced, Variable Costs Are $6 Per