Total costs are $140 000 when 10 000 units are made. Of this amount, variable costs are $4 per unit. What are the total costs when 8000 units are produced?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Q1) Total costs are $140 000 when 10 000 units are made. Of this amount, variable costs are $4 per unit. What are the total costs when 8000 units are produced? 
A. $140 000
B. $136 000
C. $132 000
D. $124 000

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