Total fixed costs for Toys and Trinkets Incorporated are $88,000. Total costs, including both fixed and variable, are $155,000 if 268,000 units are produced. The total variable costs at a level of 275,000 units would be
A) $68,750.
B) $159,049.
C) $90,299.
D) $151,055.
A
Explanation: A)
Cost Equation y = vx + f
$155,000 = 268,000x + $88,000
X = 0.25
Then $0.25 × 275,000 = $68,750
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