Simon IncCurrently Produces 110,000 Units at a Cost of $440,000

question 9

Multiple Choice

Simon Inc.currently produces 110,000 units at a cost of $440,000.The cost is variable.Next year Simon Inc.expects to produce 115,000 units.Simon's relevant range for production is 100,000 to 120,000 units.If 115,000 units are produced next year,what is the expected variable cost?

• A) $420,000
• B) $430,000
• C) $440,000
• D) $460,000

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Definitions:

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