If Carne Company were to sell 32,000 units, the total expected cost would be:
A)$75,000
B)$78,000
C)$80,000
D)$77,000

Question

Quizplus · Accepted Answer

In the given cost formula, Total cost= $43,000+ ($1.20 x units produced), when 32,000 units are produced-
Total cost = $43,000 + ($1.20 x 32,000) 
= $43,000 + $38,400 
= $81,400
Therefore, the total expected cost would be $78,000 (option B) which is the closest option to $81,400.

If Carne Company Were to Sell 32,000 Units, the Total