London Plastics has monthly fixed costs of 82500 while its v

London Plastics has monthly fixed costs of $82,500, while its variable costs are $4.50 per unit. If the sales price of a unit is $15.25 and London Plastics sell 15,000 units, the company\'s total variable costs will be O A. $161,250. O B. $67,500. C. $82.500. O D. $228,750.

Solution

Option B the answer. ($67,500)

Given Variable Cost per unit = $4.50

Number of units sold =15,000 units

Therefore

Total Variable costs = number of units sold x variable cost per unit 15,000 units x 4.50 per unit =$67,500