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If a company has a budgeted sales volume of 1,000 units and a budgeted variable
If a company has a budgeted sales volume of 1,000 units and a budgeted variable cost of $20 per unit, what is the total budgeted variable cost?
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If a company has a budgeted sales volume of 1,000 units and a budgeted variable cost of $20 per unit, what is the total budgeted variable cost?
$20,000
$15,000
$25,000
$30,000
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Total budgeted variable cost = Budgeted sales volume * Budgeted variable cost per unit = 1,000 * $20 = $20,000.
Questions & Step-by-step Solutions
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Q: If a company has a budgeted sales volume of 1,000 units and a budgeted variable cost of $20 per unit, what is the total budgeted variable cost?
Solution:
Total budgeted variable cost = Budgeted sales volume * Budgeted variable cost per unit = 1,000 * $20 = $20,000.
Steps: 4
Show Steps
Step 1: Identify the budgeted sales volume, which is 1,000 units.
Step 2: Identify the budgeted variable cost per unit, which is $20.
Step 3: Multiply the budgeted sales volume (1,000 units) by the budgeted variable cost per unit ($20).
Step 4: Calculate the total budgeted variable cost: 1,000 * $20 = $20,000.
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