Use the Information Below to Answer the Following Question(s)

question 99

Multiple Choice

Use the information below to answer the following question(s) .
Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit.The sales price per unit is $20.00 and they sold 8,000 units.
-Sanjay Company's total variable costs will be

• A) $112,000.
• B) $160,000.
• C) $120,000.
• D) $40,000.

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Definitions:

Representative Firm

A hypothetical or average firm which is used as a standard or model to represent typical characteristics of firms in an industry.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, leading to competition based on price, quality, and branding.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market, essentially covering opportunity costs.

Nonprice Competition

Strategies used by companies to attract customers through methods other than lowering prices, such as quality improvement, service, or branding.