The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If the company expects to manufacture 5,000 monitors, the total costs would be ________.
A) $60,000
B) $200,000
C) $260,000
D) $420,000
E) $500,000

Question

Quizplus · Accepted Answer

Total cost = Fixed cost + Variable cost per unit x number of units
Total cost = $40 + $12 x 5,000
Total cost = $40 + $60,000
Total cost = $260,000

The Fixed Cost in Manufacturing a Single LED Monitor Is