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Management · Q247

Management Accounting

Graduate and Post Graduate · Management · question 247

Q247

If variable cost per unit is 25 and quantity of units sold is 5000, then total variable cost would be

A.
$155,000
B.
$125,000
Answer
C.
$135,000
D.
$145,000

Answer: Option B

Solution

Answer: Option B
Solution:
Total variable cost = Quantity of units sold × Variable cost per unit
= 5000 × 125,000.