In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item.There are also different "what if" values that can help a manager to calculate costs and revenue withvariability in demand.ABC1Profit Model2What-3DataIfDemandValues420,0005 Unit Price ($)5040,0009Unit Cost ($)2555,0007Fixed Cost ($)550,00060,0008Demand60,00065,0009Quantity Produced55,00010From the "what if" values, calculate the total cost when demand is 40,000.A. $2,000,000B. $75,000C. $1,100,000D. $1,925,000

Total cost is a fundamental concept in business that refers to the complete expense incurred by a…

Answered: From the "what if" values, calculate…

From the "what if" values, calculate the total cost when demand is 40,000. A. $2,000,000 B. $75,000 C. $1,100,000 D. $1,925,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 41E: Examine the graphs in Exercise 3-40. Required: As explained in the chapter, cost behavior patterns...

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Question

In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item.
There are also different "what if" values that can help a manager to calculate costs and revenue with
variability in demand.
A
B
C
1
Profit Model
2
What-
3
Data
IfDemand
Values
4
20,000
5 Unit Price ($)
50
40,000
9
Unit Cost ($)
25
55,000
7
Fixed Cost ($)
550,000
60,000
8
Demand
60,000
65,000
9
Quantity Produced
55,000
10
From the "what if" values, calculate the total cost when demand is 40,000.
A. $2,000,000
B. $75,000
C. $1,100,000
D. $1,925,000

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