openvellum Secure l httpswwwmathxlc ACCT 202Routh Summer 2

|? openvellum ? Secure l https://www.mathxl.c ACCT 202-Routh, Summer 2018 (online) Test: Exam (Module 3 - ch. 6, 7) This Question: 3 pts b Accounti Time Limit: 0200:00 Submit Test 10 of 12 (7 complete) This Test: 43 pts Doggie Pals produces s220,000. of this the same relevant range. Round intermediate calculations to the ne rs each month that give off a fresh scent to keep your dog smelling clean 80,000 dog colla amount, $150,000 are variable costs. What are the total production costs when 125,000 collars are produced? (Assume both production levels are in arest cent and the final answer to the nearest dollar.) OA. $165.000 O B. $235,000 O C. $305,000 O D. $455,000 35m 32s 435 34m 49s Menu mic Study les 3m 26s 3m 26s 7 3 Use CVP analysis to measure the impact o

Solution

Answer is C. $ 305000 Explanation: Total cost of producing 80000 units 220000 Less: Variable cost 150000 Fixed cost 70000 Variable cost per unit (150000/80000) 1.88 Total cost of producing 125000 units: Variable cost (125000 units @ 1.88) 235000 Add: Fixed cost 70000 Total cost of 125000 units 305000