Domino Company's variable selling and administrative cost is $48,000 when production is 6,000 units. are the variable selling and administrative expenses for 7,000 and 8,000 units, respectively.
A) $56,000 and $64,000
B) $48,000 and $48,000
C) $64,000 and $56,000
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

The variable cost per unit is $48,000 / 6,000 units = $8 per unit. For 7,000 units, the cost is 7,000 * $8 = $56,000, and for 8,000 units, it is 8,000 * $8 = $64,000.

Domino Company's Variable Selling and Administrative Cost Is $48,000 When