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  • 02-03-2020
  • Business
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Total costs for ABC Company at​ 150,000 units are​ $320,000, while total fixed costs are​ $150,000. The total variable costs at a level of​ 300,000 units would be

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jepessoa
jepessoa jepessoa
  • 03-03-2020

Answer:

$340,000

Explanation:

Total costs for producing 150,000 units = $320,000

if fixed costs are $150,000, that means that the variables costs = $320,000 - $150,000 = $170,000

variable cost per unit = $170,000 / 150,000 units = $1.33 per unit

total variable costs for producing 300,000 units = 300,000 x $1.13 = $340,000

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