Use the Figure to Answer the Following Question(s)

question 153

Multiple Choice

Use the figure to answer the following question(s) .
Figure 8-3

Using Figure 8-3, calculate the total variable cost of producing three units.

• A) $10
• B) $15
• C) $30
• D) $45

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Definitions:

Variable Cost

Costs that fluctuate with the level of output or production, such as raw materials and direct labor.

Units Sold

The total number of individual items that have been sold over a specified time period.

Manufacturing Costs

Expenses directly related to the production of goods, including materials, labor, and overhead costs.

Manufacturing Overhead

All indirect production costs associated with the manufacturing process, excluding direct materials and direct labor.