MajorNet Systems is a​ start-up company that makes connectors for​ high-speed Internet connections. The company has budgeted variable costs of​ $145 for each connector and fixed costs of​ $7,500 per month.​ MajorNet's static budget predicted production and sales of 100 connectors in​ August, but the company actually produced and sold only 84 connectors at a total cost of​ $21,000. MajorNet's total flexible budget cost for 84 conectors per month is
(A) $14,500.
(B) $12,180.
(C) $19,680.
(D) $21,000.

Respuesta :

Answer:

$ 12180

Explanation:

Given data in the problem:

Variable cost for each connector = $ 145

Fixed cost per month = $ 7500

Predicted production and sales = 100 connectors

Actual production and sales = 84 connectors

Total cost of the connectors = $ 21000

Now,

The total flexible budget cost for 84 connectors is calculated as:

= 84 × variable cost

or

The total flexible budget cost for 84 connectors = 84 × $ 145

or

The total flexible budget cost for 84 connectors = $ 12180