Question
The following costs relate to Soapbox Company for a relevant range of up to 10,000 units annually: Variable Costs: Direct materials $2.50 Direct labor 0.75
The following costs relate to Soapbox Company for a relevant range of up to 10,000 units annually: Variable Costs: Direct materials $2.50 Direct labor 0.75 Manufacturing Overhead 1.25 Selling and administrative 1.00 Fixed Costs: Manufacturing overhead $20,000 Selling and Administrative 10,000 Soapbox sells each unit for $10.00. Which of the following equations best describes the equation to determine total profit for a sales volume of 8,000 units? Select one: A. Profit = $10.00X ($30,000 + $5.50X) B. Profit = $30,000 + $5.50X C. Profit = $10X D. Profit = $10.00X ($10,000 $4.50X)
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