South Coast 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 South Coast's store expects to sell 8,900 units next year?
A) $3,567,950
B) $2,192,400
C) $4,104,950
D) $901,900

Question

South Coast 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 South Coast's store expects to sell 8,900 units next year?
A) $3,567,950 
B) $2,192,400 
C) $4,104,950 
D) $901,900

Quizplus · Accepted Answer

Total cost = fixed cost ($192,000 + $305,000 + $40,000) + variable costs (8,900 units × $186.00 variable costs per unit) = $1,655,400 = $2,192,400.

South Coast Appliance Store Is a Small Company That Has