In Year 1, Variable Costs Per Unit of Output Are

Multiple Choice

In Year 1, variable costs per unit of output are $21 and output is 11,000 units. If variable costs are expected to increase by 50c per unit in the following year and output is expected to increase by 10%, the projected figure for total variable costs for Year 2 is:

A) $260,150
B) $6,050
C) $23,650
D) $236,500