Question: I've started working at a warehouse which makes a single auto part, shocks. We sell this auto parts in box sets of 4 for $82.

I've started working at a warehouse which makes a single auto part, shocks. We sell this auto parts in box sets of 4 for $82. It costs us 3 dollars of variable product costs to make an additional spring. Of our selling price, it is estimated that 2 dollars relates to selling costs such as commission. These spring do not have a large cost to make an additional spring, but do require a lot of machinery. Our office admin costs are generally 60% variable.

sales 200,000
COGS 150,000
GM 50,000
Op Costs
Admin 18,000
Selling 22,000
NI 10,000

What is the total Fixed Costs

a.

20000

b.

None of the above

c.

7200

d.

30800

e.

9200

f.

129200

g.

60800

h.

30000

i.

120000

j.

10800

k.

2000

Clear my choice

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