The Chowning Company manufactures ear buds that sell for $20 a pair. The variable cost of each set of ear buds is $6.35. The company incurs monthly fixed costs of $10,000. If Chowning makes 1,200 sets of ear buds in February, what is the total cost?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge...
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The Chowning Company manufactures ear buds that sell for $20 a pair. The
variable cost of each set of ear buds is $6.35. The company incurs monthly
fixed costs of $10,000. If Chowning makes 1,200 sets of ear buds in February,
what is the total cost?
Transcribed Image Text:The Chowning Company manufactures ear buds that sell for $20 a pair. The variable cost of each set of ear buds is $6.35. The company incurs monthly fixed costs of $10,000. If Chowning makes 1,200 sets of ear buds in February, what is the total cost?
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