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What is the total variable cost of the product

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Reference no: EM131754629

Chocolate Company is considering the production of a new product. Chocolate Company has the following data available:

Expected sales (units) over product life 15,000
Variable production costs $42 per unit
Variable selling costs $16 per unit
Annual fixed production costs $15,000
Annual fixed selling costs $5,000
Research and development costs $184,000

What is the total variable cost of the product over the product life cycle?

A. $716,000
B. $870,000
C. $204,000
D. $880,000

Reference no: EM131754629

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