M & G TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations.

What are the estimated total costs if the company expects to sell 3,300 units next year?
A) $1,458,400
B) $2,803,700
C) $2,361,700
D) $517,900

Question

M & G TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations.

What are the estimated total costs if the company expects to sell 3,300 units next year?
A) $1,458,400 
B) $2,803,700 
C) $2,361,700 
D) $517,900

Quizplus · Accepted Answer

Variable costs per unit = ($570,000 + $46,000) / 2,000 = $308 per unit
Total cost = fixed costs ($130,000 + $280,000 + $32,000) + variable costs (3,300 units × $308
variable costs per unit) = $1,016,400 = $1,458,400 total estimated costs.

M & G TV and Appliance Store Is a Small