Schwiesow Corporation has provided the following information: If 4,000 units are sold, the total variable cost is closest to:
A) $54,400
B) $48,800
C) $57,600
D) $67,600

Question

Schwiesow Corporation has provided the following information:  If 4,000 units are sold, the total variable cost is closest to:
A) $54,400 
B) $48,800 
C) $57,600 
D) $67,600

Quizplus · Accepted Answer

From the given information, we can calculate the variable cost per unit using the formula:

Variable cost per unit = (Total variable cost - Total fixed cost) / Number of units produced

Variable cost per unit = ($118,800 - $24,000) / 6,000
Variable cost per unit = $94,800 / 6,000
Variable cost per unit = $15.80

Now, to calculate the total variable cost for 4,000 units, we can multiply the variable cost per unit by the number of units:

Total variable cost = Variable cost per unit * Number of units sold
Total variable cost = $15.80 * 4,000
Total variable cost = $63,200

Therefore, the closest answer to the total variable cost for 4,000 units is option A) $54,400.

Schwiesow Corporation Has Provided the Following Information: If 4,000