At Medallion Industries, during 20x5 the anticipated production is 5,000 units, budgeted variable costs are $75,000, and budgeted ﬁxed costs are $24,000.If 5,600 units are actually produced, what is the expected total cost?
A)$110,600
B)$84,000
C)$108,000
D)$88,394
E)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

The total cost is the sum of variable and fixed costs. Variable cost per unit is $75,000 / 5,000 = $15. For 5,600 units, variable costs are 5,600 * $15 = $84,000. Fixed costs remain $24,000. Total cost = $84,000 + $24,000 = $108,000.

At Medallion Industries, During 20x5 the Anticipated Production Is 5,000