London Plastics has monthly fixed costs of $82,500, while its variable costs are $4.50 per unit. If the sales price of a unit is $15.25 and London Plastics sell 15,000 units, the company's total variable costs will be A. $161,250. B. $67,500. C. $82.500. D. $228,750.

Question

Business

Blayne

15 January, 18:28

London Plastics has monthly fixed costs of $82,500, while its variable costs are $4.50 per unit. If the sales price of a unit is $15.25 and London Plastics sell 15,000 units, the company's total variable costs will be A. $161,250. B. $67,500. C. $82.500. D. $228,750.

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Answers (1)

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Lukas Moody · Answer 1

The correct answer is B.

Explanation:

Giving the following information:

The variable costs are $4.50 per unit. London Plastics sell 15,000 units.

To calculate the total variable costs we need to use the following formula:

Total variable cost = unitary variable cost * total amount of units

Total variable cost = 4.5*15,000 = $67,500