stExam 2 is Question 1 pt 25 of 32 10 complete This Test 32

st:Exam 2 is Question: 1 pt 25 of 32 (10 complete) This Test: 32 pts Total fixed costs for Green Planes Inc. are $160,000.Total costs, including both fixed and variable, are $400,000 r 140,000 units are produced The total variable costs at a level of 230,000 units would be (Round any intermediary calculations to the nearest cent) O A. $146,087 O B. $657,143 O C. $262.857 O D. $393,300

Solution

Answer D. $393,300 Variable Cost - 140,000 Units = $400,000 (Total Costs) - $160,000 (Fixed Costs) Variable Cost - 140,000 Units = $240,000 Variable Cost per Unit = $240,000 / 140,000 Units = $1.71 per Unit (Approx.) Variable Cost - 230,000 Units = $1.71 X 230,000 Units Variable Cost - 230,000 Units = $393,300 (Approx.)