# Question & Answer: dit View Go Tools Window Help Screen Shot 2017-09-06 at 3.30.06 PM .. Search Martinez Company's relev…..

5.if 8000 units are sold, what is the total amount of variable costs related to the units sold?

dit View Go Tools Window Help Screen Shot 2017-09-06 at 3.30.06 PM .. Search Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows: Por Unit \$6.00 \$3.50 \$1.50 \$4.00 Direct materials Direct labor Variable manufacturing overhead Flxod manufacturing overhead Fixed selling expense Fbxed administrative expenise Sales commissions Variable administrative expense \$3.00 \$2.00 \$1.00 \$0.50 of Shot f-3-3 Screen Shot 2017-09. 14.51 PM 2017-05. .2.19 PM 5fl16-4.docx Shot Screen Shot 2017-090.06 PM Screen Sh Sereen Shot CSR Prompt and 2017-05…7.2 1 37 PM Rubric- Sp17

## Expert Answer

 Direct Material \$ 6.00 Direct Labor \$ 3.50 Variable Manufacturing Overhead \$ 1.50 Variable Administrative Expense \$ 0.50 Sales Commission \$ 1.00 Variable Cost Per Unit \$ 12.50

Total Units = 8,000 Units

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Question & Answer: dit View Go Tools Window Help Screen Shot 2017-09-06 at 3.30.06 PM .. Search Martinez Company's relev…..
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Hence, Variable Cost = Variable Cost Per Unit * Total Units

= \$ 12.50 * 8,000 Units

\$ 100,000

Hence, the correct answer is \$ 100,000