Question 176799
Revenue(8,000 units) = $16,000
Variable Costs = 4,000
Contribution margin = $12,000
Fixed costs = 4,000
Net income = $8,000 
If actual production totals 8,400 units, the flexible budget would show variable costs of:
a. $16,400
b. $4,000
c. $4,100
d. $4,200

:
the revenue per unit is $2(16000/8000)
:
the variable costs are 25% of revenue
:
so since the revenue from 400 more units is 800(400(2))
:
then the extra variable costs is 25% of 800 or $200
:
so total Variable costs should be $4200...CHOICE D