The cross over point for two types of machine producing widgets is 625 units. Machine A has a fixed cost of P15,000 while Machine B has a fixed cost of P40,000. If the variable cost of Machine A is five times that of the variable cost of Machine B, what is variable cost of Machine A? O P5.00 OP100.00 O P25.00 O P10.00 O P50.00

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...
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The cross over point for two types of machine producing widgets is 625 units. Machine A has a fixed cost of P15,000 while Machine B has a fixed cost of P40,000. If the
variable cost of Machine A is five times that of the variable cost of Machine B, what is variable cost of Machine A?
P5.00
P100.00
P25.00
P10.00
P50.00
Transcribed Image Text:The cross over point for two types of machine producing widgets is 625 units. Machine A has a fixed cost of P15,000 while Machine B has a fixed cost of P40,000. If the variable cost of Machine A is five times that of the variable cost of Machine B, what is variable cost of Machine A? P5.00 P100.00 P25.00 P10.00 P50.00
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