Exhibit 5-5
Tyler Incorporated sells 5,000 units per month with the following costs:
Variable costs: $1.25 per unit
Fixed costs: $3,000 per month
-Refer to Exhibit 5-5.What are Tyler's total costs each month?
A)$3,000
B)$9,250
C)$6,250
D)$7,250
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Tyler's total costs each month are calculated by adding the fixed costs to the total variable costs. The total variable costs are $1.25 per unit * 5,000 units = $6,250. Adding the fixed costs of $3,000 gives a total of $9,250.

Exhibit 5-5 Tyler Incorporated Sells 5,000 Units Per Month with the Following