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andrew11 [14]
2 years ago
15

Carter co. sells two products, arks and bins. last year, carter sold 14,000 units of arks and 56,000 units of bins. related data

are: product unit selling price unit variable cost unit contribution margin arks $120 $80 $40 bins 80 60 20 what was carter co.'s variable cost of e, with e representing one overall "enterprise" product?
a. $64

b. $140

c. $70

d. $60
Business
1 answer:
Marta_Voda [28]2 years ago
7 0

To answer this question, the only important values are:

<u>Bin</u>

Units sold = 14,000

Variable cost = $80

<u>Arks</u>

Units sold = 56,000

Variable cost = $60


Calculating for total variable cost:

Total variable cost = $80 * 14,000 + $60 * 56,000

Total variable cost = $4,480,000

Calculating for e:

e = Total variable cost / Total units sold

e = $4,480,000/(14,000+56,000)

e = $64

Answer is letter A.

 

<span> </span>

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