Which of the following shows the total cost to Sohar Company in case it produced additional 12000 units by incurring additional fixed cost of OMR 9500 and with a decrease of 3.5 OMR in unit variable cost?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
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The cost data is given below for Sohar Company.
Variable cost per unit:
OMR 18
Initial fixed cost :
OMR 34000
Unit produced and Sold: 23000 units
Which of the following shows the total cost to Sohar
Company in case it produced additional 12000 units
by incurring additional fixed cost of OMR 9500 and
with a decrease of 3.5 OMR in unit variable cost?
Select one:
O a. 551,000
O b. 796,000
Oc. 719,500
O d. 667,000
Transcribed Image Text:The cost data is given below for Sohar Company. Variable cost per unit: OMR 18 Initial fixed cost : OMR 34000 Unit produced and Sold: 23000 units Which of the following shows the total cost to Sohar Company in case it produced additional 12000 units by incurring additional fixed cost of OMR 9500 and with a decrease of 3.5 OMR in unit variable cost? Select one: O a. 551,000 O b. 796,000 Oc. 719,500 O d. 667,000
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