Tokless Inc.planned and manufactured 400,000 units of its single product in 2010,its first year of operations.Variable manufacturing costs were $50 per unit of production.Planned and fixed manufacturing costs were $800,000.Marketing and administrative costs (all fixed)were $600,000 in 2010.Tokless Inc.sold 195,000 units of product in 2010 at $65 per unit.Sales for 2010 are calculated to be:

Question

Quizplus · Accepted Answer

To calculate the sales for 2010, we need to first calculate the total cost of production:

Variable manufacturing cost per unit = $50
Total units produced = 400,000
Total variable manufacturing cost = $50 x 400,000 = $20,000,000

Fixed manufacturing cost = $800,000
Marketing and administrative cost = $600,000

Total cost of production = $20,000,000 + $800,000 + $600,000 = $21,400,000

To calculate the sales for 2010, we need to multiply the number of units sold by the selling price per unit:

Units sold = 195,000
Selling price per unit = $65

Sales for 2010 = 195,000 x $65 = $12,675,000

Therefore, the best choice is B.