Total fixed costs for Green Planes Inc. are $150,000. Total costs, including both fixed and variable, are $600,000 if 140,000 units are produced. The total variable costs at a level of 230,000 units would be (Round any intermediary calculations to the nearest cent.) A. $273,913 B. $246,429 C. $738,300 D. $985,714

The correct answer is C.

Explanation:

Giving the following information:

Total fixed costs for Green Planes Inc. are $150,000. Total costs, including both fixed and variable, are $600,000 if 140,000 units are produced.

First, we need to calculate the unitary variable cost:

Unitary variable cost = (total cost - fixed cost) / number on units

Unitary variable cost = (600,000 - 150,000) / 140,000 = $3.21 per unit

Now, we can calculate the total variable cost for 230,000 units:

Total variable cost = 3.21*230,000 = $738,300