A Company Has Monthly Fixed Costs of $96,000

question 205

Multiple Choice

A company has monthly fixed costs of $96,000. The variable costs are $8.00 per unit. If the sales price of a unit is $14.00 and we sell 8000 units, the company's total variable costs will be

• A)$96,000.
• B)$64,000.
• C)$112,000.
• D)$48.

---

Definitions:

Destruction

Destruction refers to the act of causing such significant damage to something that it loses its value, function, or identity.

Damage

Damage refers to the loss or injury suffered as a result of an act or omission, which may be subject to compensation in legal terms.

Agreement to Sell

A contractual arrangement where a seller agrees to transfer goods or services to a buyer at a future date, under specified conditions.

Contract to Sell

An agreement where one party promises to transfer ownership of goods or property to another upon the satisfaction of specified conditions.