Assume that Upward Company has total variable costs of $90,000 when 30,000 units are sold. If 40,000 units were sold, total variable costs would be:

Question

Quizplus · Accepted Answer

Variable costs change in direct proportion to the number of units sold. If 30,000 units cost $90,000, then the cost per unit is $3. Therefore, for 40,000 units, the total variable cost would be 40,000 x $3 = $120,000.

Assume That Upward Company Has Total Variable Costs of $90,000