When 10,000 Units Are Produced, Variable Costs Are $6 Per

question 119

Multiple Choice

When 10,000 units are produced, variable costs are $6 per unit. Therefore, when 20,000 units are produced:

• A)variable costs will total $120,000
• B)variable costs will total $60,000
• C)variable unit costs will increase to $12 per unit
• D)variable unit costs will decrease to $3 per unit

---

Definitions:

Receiving Today

The concept of obtaining or expecting to obtain a certain amount or value in the present time.

Cash Flows

Refers to the net amount of cash and cash-equivalents being transferred into and out of a business.

Discounted Value

Discounted value is the present value of a future amount of money or stream of cash flows given a specified rate of return, reflecting the time value of money.

Present Value

The current worth of a future sum of money, given a specific rate of return or discount rate.