Harper Inc. has fixed costs of $660,000 when it produces 375,000 units. Its total variable costs...
Harper Inc. has fixed costs of
$660,000
when it produces
375,000
units. Its total variable costs are
$120,000.
When Harper Inc. produces
460,000
units, its total variable costs will be
A. 120,000
B. 171,600
C. 119,600
D. 147,200
Homework Answers
Please provide rating...
| Computation of variable cost per unit with 375000 unit | |||
| a | Variable cost | 120,000 | |
| b | Total unit produced | 375000 | |
| c=a/b | Unit variable cost | 0.32 | |
| Computation of variable cost for 460000 unit | |||
| Variable cost = 460000*.32 | 147200 | ||
| Correct answer is option D. | 147200 | ||
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