Asked by Evelyn Domingo on Jun 26, 2024
Verified
Waldhauser Corporation's relevant range of activity is 3,000 units to 7,000 units.When it produces and sells 5,000 units, its average costs per unit are as follows: If 6,000 units are sold, the total variable cost is closest to:
A) $79,500
B) $107,400
C) $67,800
D) $87,600
Total Variable Cost
The sum of all costs that vary with output level, including materials, labor, and other costs that increase with production volume.
Relevant Range
The range of activity within which the assumptions about fixed and variable cost behavior are valid.
Average Costs
The total costs (fixed and variable) divided by the total quantity produced, representing the cost per unit of production.
- Calculate the total variable expenditure and the variable cost for each unit at various levels of output.
Verified Answer
Learning Objectives
- Calculate the total variable expenditure and the variable cost for each unit at various levels of output.
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