Question 4 (3 Marks) Total costs for Watson \& Company at 50,000 units are $300,000, while total fixed costs are $150,000; the gross margin is 25% and the corporate tax rate is 40%. The total variable costs at a level of 200,000 units would be A) $30,000. B) $60,000. C) $400,000. D) $800,000. E) None of the above