Crazy Toys, Inc.
Cost of Materials
$\begin{array}{lr}
\text { No. of toys produced } & \text { Total cost of materials } \
100,000 & \$ 30,000 \
200,000 & \$ 60,000 \
300,000 & \$ 90,000
\end{array}$
-Refer to the Figure.What is the total materials cost at a production level of 220,000 toys?
A)$22,000
B)$66,000
C)$88,000
D)$132,000

Question

Crazy Toys, Inc. 
Cost of Materials
$\begin{array}{lr}
\text { No. of toys produced } & \text { Total cost of materials } \
100,000 & \$ 30,000 \
200,000 & \$ 60,000 \
300,000 & \$ 90,000
\end{array}$
-Refer to the Figure.What is the total materials cost at a production level of 220,000 toys?
A)$22,000
B)$66,000
C)$88,000
D)$132,000

Quizplus · Accepted Answer

The cost of materials increases linearly with the number of toys produced. At 100,000 toys, the cost is $30,000. Therefore, the cost per toy is $30,000 / 100,000 = $0.30. For 220,000 toys, the total materials cost would be 220,000 * $0.30 = $66,000.

Crazy Toys, Inc -Refer to the Figure