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21 March, 09:28

When Sherka, Inc. sells 40,000 units, its total variable cost is $96,000. What is its total variable cost when it sells 45,000 units?

A. $84,000

B. $96,000

C. $108,000

D. It cannot be determined from the information given.

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Answers (1)
  1. 21 March, 13:16
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    The correct answer is D.

    Explanation:

    Giving the following information:

    When Sherka, Inc. sells 40,000 units, its total variable cost is $96,000.

    Unitary variable cost = 96,000/40,000 = $2.4

    What is its total variable cost when it sells 45,000 units?

    Variable cost = 45,000*2.4 = $108,000
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