In the spreadsheet below, there is data on the price, cost, demand, and quantity

Question

In the spreadsheet below, there is data on the price, cost, demand, and quantity produced for an item. There are also different "what if" values that can help a manager to calculate costs and revenue with variability in demand. Profit Model What-If Demand Values Data Unit Price ($) Unit Cost (S) 7 Fixed Cost ($) Demand 40,000 55,000 60,000 65,000 50 25 6 60,000 9 Quantity Produced 55,000 Calculate the variable cost when the demand is 60,000 units A $1,430,000 B. S1,375,000 O C $2,750,000 D. $1,320,000

Explanation / Answer

as unit cost is $25 and quanitty produced is 55000

therefore required variable cost =unit cost *quatity produced =25*55000 =1375000

option B is correct

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