A Review of Parson Corporation's Accounting Records Found That at a Volume

Multiple Choice

A review of Parson Corporation's accounting records found that at a volume of 90,000 units, the variable and fixed cost per unit amounted to $8 and $4, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 85,000 units?

A) $1,020,000.
B) $1,040,000.
C) $1,060,000.
D) $1,080,000.
E) None of the answers is correct.