Taylor and Ashcroft Is Reviewing a New Product with Labour

question 75

Multiple Choice

Taylor and Ashcroft is reviewing a new product with labour cost of $16.40 per unit, raw materials cost of $41.65 a unit, and fixed costs of $164,000 a year. Sales are projected at 85,000 units per year over the 3-year life of the product. What is the amount of the total variable costs per year?

• A) $3,540,250
• B) $3,780,500
• C) $4,221,500
• D) $4,770,250
• E) $4,934,250

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