Answer:
The multiple choices are as follows:
A. $313,200 B. $223,000 C. $71,000 D. $242,200
The correct option is D,$242,200
Explanation:
Variable costs are costs that vary with the level of output such as the direct labor cost,direct material costs including the packaging costs since the more the output produced the more packaging materials that would be required.
Total variable costs=direct labor cost+direct material cost+packaging costs
direct labor cost is $138,000
direct material cost is $85,000
packaging cost is $19,200
total variable cost=$138,000+$85,000+$19,200=$242,200.
depreciation ,factory insurance as well as the salaries are fixed costs.
