Based on a predicted level of production and sales of 30,000 units, a company anticipates total variable costs of $120,000, fixed costs of $42,000, and operating income of $36,000. Based on this information, the budgeted amount of variable costs for 27,000 units would be: $120,000. $108,000. $78,000. $42,000. $129,000.

Question

Business

Giggles

21 April, 00:20

Based on a predicted level of production and sales of 30,000 units, a company anticipates total variable costs of $120,000, fixed costs of $42,000, and operating income of $36,000. Based on this information, the budgeted amount of variable costs for 27,000 units would be: $120,000. $108,000. $78,000. $42,000. $129,000.

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Answers (1)

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Jennifer Molina · Answer 1

The correct answer is B.

Explanation:

Giving the following information:

Based on a predicted level of production and sales of 30,000 units, a company anticipates total variable costs of $120,000, fixed costs of $42,000, and operating income of $36,000. Based on this information, the budgeted amount of variable costs for 27,000 units would be:

Unitary variable cost = 120,000/30,000 = $4

Variable cost = 4*27,000 = $108,000