Use the Table Below to Answer the Following Questions) -Calculate the Variable Cost When the Demand Is 60,000 Units

question 2

Multiple Choice

Use the table below to answer the following questions) .
In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. $$\begin{array} { | l | l | l | l | } \hline & \text { A } & \text { B } & \text { C } \\\hline 1 & \text { Profit Madel } & & \\\hline 2 & & & \\\hline 3 & & & \text { What } \text { if Demand } \\& \text { Data } & & \text { Values } \\\hline 4 & & & 20,000 \\\hline 5 & \text { Unit Price \$) } & 50 & 40,000 \\\hline 6 & \text { Unit Cost \$) } & 25 & 55,000 \\\hline 7 & \text { Fixed Cost \$) } & 550,000 & 60,000 \\\hline 8 & \text { Demand } & 60,000 & 65,000 \\\hline 9 & \text { Quantity Produced } & 55,000 & \\\hline 10 & & & \\\hline\end{array}$$
-Calculate the variable cost when the demand is 60,000 units.

• A) $1,430,000
• B) $1,375,000
• C) $2,750,000
• D) $1,320,000

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