This answer assumes no fixed costs.
This is the variable cost of production only.
This is the cost at a production level of 100,000 units.
In order to solve this problem we need to determine a total fixed cost and the variable cost per unit. The total fixed costs are $200,000 ($100,000 each of manufacturing and selling costs). The total variable costs in the 100,000 unit budget are $450,000 ($200,000 raw materials + 100,000 direct labor + $100,000 manufacturing overhead + $50,000 selling/administrative expense). This gives a standard variable cost of $4.50 per unit. Therefore, to produce 110,000 units the company will incur $495,000 in variable costs ($4.50 × 110,000 units) plus $200,000 in fixed costs for a total of $695,000.
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All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expenses. The total costs to produce and sell 110,000 units are