Bell Company sells several products. Information of average revenue and costs is as follows:

The company sells 13,000 units.
What is the proportion of variable costs to total costs?
A) 43.15%
B) 41.27%
C) 77.25%
D) 53.94%

Question

Bell Company sells several products. Information of average revenue and costs is as follows:

The company sells 13,000 units.
What is the proportion of variable costs to total costs?
A) 43.15% 
B) 41.27% 
C) 77.25% 
D) 53.94%

Quizplus · Accepted Answer

Total variable costs = $6 + $$1.75 + $0.25 + $2 = $10 × 13,000 = $130,000
Total costs = $130,000 + $111,000 = $241,000.
Variable cost proportion = $130,000 / $241,000 = 53.94%

Bell Company Sells Several Products