At an activity level of 8,000 units, variable costs totaled $40,000 and fixed costs totaled $24,000. If 12,000 units are produced within the relevant range, determine the following: Options: a. Total unit cost would equal $5.40 b. Total costs would equal $64,000 c. Fixed cost per unit would equal $2.00 d. Total cost would equal $88.000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
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At an activity level of 8,000 units, variable costs totaled $40,000 and
fixed costs totaled $24,000. If 12,000 units are produced within the
relevant range, determine the following:
Options:
a. Total unit cost would equal $5.40
b. Total costs would equal $64,000
c. Fixed cost per unit would equal $2.00
d. Total cost would equal $88.000
Transcribed Image Text:At an activity level of 8,000 units, variable costs totaled $40,000 and fixed costs totaled $24,000. If 12,000 units are produced within the relevant range, determine the following: Options: a. Total unit cost would equal $5.40 b. Total costs would equal $64,000 c. Fixed cost per unit would equal $2.00 d. Total cost would equal $88.000
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