Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: AverageCost per UnitDirect materials$6.25Direct labor$2.80Variable manufacturing overhead$1.55Fixed manufacturing overhead$2.40Fixed selling expense$0.50Fixed administrative expense$0.40Sales commissions$1.00Variable administrative expense$0.50 If 5,000 units are sold, the total variable cost is closest to:
A. $77,000
B. $60,500
C. $53,000
D. $65,000
Answer: B
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