Asked by Somer Milliken on Jun 15, 2024
Verified
A new company manufactures tennis rackets.The fixed expenses are $78,490,and the variable expenses are $14 per racket produced.What is the expense of producing 3,500 rackets?
A) $49,000
B) $81,990
C) $127,490
D) $147,900
Fixed Expenses
Costs that do not fluctuate with changes in production level or sales volume, remaining constant over a period of time such as rent or mortgage.
Variable Expenses
Costs that vary in proportion to the level of activity or volume of goods or services produced, such as utilities or credit card charges.
- Understand how to calculate the expenses associated with the production of goods.
Verified Answer
AI
Aminul IslamJun 20, 2024
Final Answer :
C
Explanation :
The total expense is the sum of fixed expenses and variable expenses. The variable expense for producing 3,500 rackets is 3,500 * $14 = $49,000. Adding the fixed expenses of $78,490 gives a total of $78,490 + $49,000 = $127,490.
Learning Objectives
- Understand how to calculate the expenses associated with the production of goods.
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